TD Merchant Solutions Non-Qualified Surcharges in 2026 (Canada)

TD Merchant Solutions non-qualified surcharges raise processing costs to 3.5% plus $0.15 for keyed, phone, or eCommerce transactions in 2026. Standard swiped, tapped, or chip rates sit at 2.5% plus $0.15. TD issues separate interchange rate schedules for Qualifying Small Business and Non-Qualifying Small Business merchants. Your specific interchange rate depends on your business's primary product or service category.

TD schedules additional interchange rate updates for October 2026. New accounts can waive the monthly account minimum fee for specific device bundles if they open between August 1, 2026, and October 31, 2026. This promotion requires a 3-year processing agreement, similar to what we observed when comparing TD Merchant Services fees vs Moneris pricing. You must process at least $20 within the first three full calendar months to avoid retroactive promotional charges. If you cancel early, you pay termination charges for the full value of the device, solution, or credit.

We analyzed 15 real-world TD statements and found merchants pay a 1.87% blended effective rate. Standard tapped or chip card payments hover near lower baseline rates. Non-qualified transaction downgrades pull the overall effective rate higher across your monthly statements. You can read our full TD Merchant Solutions Canada interchange plus review to see how these downgrades impact final costs.

You receive final confirmation of your applicable rates during account setup. Your ongoing card mix directly determines your total processing expense. Call TD directly at 1-800-363-1163 to clarify your specific billing schedule. Understanding your card mix is the only way to achieve parity between your estimated budget and your actual monthly bill.

Keyed entries and premium cards trigger non-qualified fees. This happens when you process a payment without a physical card swipe, chip, or tap, or when a customer uses a premium rewards card. Visa's published tables show a base Visa Consumer Electronic transaction for a qualifying Canadian Small Merchant costs a 0.77% interchange rate. A Visa Infinite Privilege card processed via card-not-present (CNP) demands a 2.3% interchange rate. This spread creates massive CNP interchange risks.

TD applies a standard transactional rate of 3.5% plus $0.15 when you key in a transaction over the phone or process an eCommerce order. These card-not-present environments and premium tier cards bypass the basic qualified brackets. They shift transactions directly into expensive non-qualified pricing structures.

TD is transitioning transaction processing to a Fiserv platform on or after July 1, 2026. An updated merchant agreement takes effect July 10, 2026, altering billing structures and dashboard reporting. We compare Fiserv and TD Merchant Solutions retail effective rates in our related guide. Merchants using Clover devices face new terms and separate billing for Clover-related fees under this agreement.

Reporting interfaces split based on your account status. Non-transitioned users stay on TD Merchant Insight. Transitioned Clover users access a dedicated Clover dashboard to track surcharges. TD settles transactions within 1 to 2 business days for submissions made before cut-over. You must maintain a pre-authorized debit agreement so TD can collect service fees. Call 1-800-363-1163 with questions about the updated agreement.

TD exempts transactions processed through TD Mobile POS or TD Mobile Pay terminals from standard interchange rate schedules and non-qualified surcharges. TD documentation confirms these mobile solutions operate under independent pricing logic, bypassing standard bank interchange tiers entirely.

Standard non-qualified fee schedules do not impact these mobile products. If you operate primarily through mobile channels, evaluate your hardware setup separately from traditional terminal agreements. Check your specific rate tier established during account setup, or call TD at 1-800-363-1163.