TD Merchant Solutions Recurring Billing Fees in 2026: What Canadian Merchants Actually Pay

TD Merchant Solutions charges a non-swipe rate of 3.5% plus $0.15 for keyed-in, phone, and eCommerce recurring billing transactions. This sits higher than the 2.5% plus $0.15 rate applied to swiped, tapped, or chip-processed in-person sales. Online subscription payments fall into the card-not-present category. This triggers non-swipe rates unless you negotiate a customized interchange-plus pricing model with a Payment Advisor.

Card-not-present recurring payments hit different interchange costs based on the specific card product. Visa's published tables peg the Consumer Electronic Small Merchant interchange rate at 0.77%, while the Visa Infinite Privilege card-not-present rate spikes to 2.3% for small merchants. TD applies discount rate adjustment fees consisting of interchange differentials and a fixed rate adjustment fee, such as 0.15% for certain Visa and Mastercard credit transactions. This inflates your processing overhead when customers pay with premium credit cards.

TD statements list recurring monthly overhead, including a $9.95 PCI security fee and a $4.95 monthly service fee. Merchants also see equipment rental fees, with sample unit costs hitting $25.00 and $35.00. These fixed charges drain your account regardless of processing volume. TD does provide unlimited merchant solution deposits into TD business accounts at no extra cost.

Your statements also expose pass-through assessment fees and scheduled rate adjustments. Visa credit assessment fees cost 0.1017%. Mastercard credit assessment fees run 0.0983%. Effective November 1, 2025, the Visa Credit Rate increases from 1.30% to 1.32%, and its Rate Adjustment Fee rises from 0.15% to 0.2%. The Mastercard Credit Rate shifts from 0.97% to 0.99%, and its Rate Adjustment Fee jumps from 0.15% to 0.2%. To spot these creeping costs, you need to learn how to read your TD merchant statement closely.

Across 15 real statements, merchants achieved a 1.87% blended effective rate across combined payment types. However, recurring billing merchants processing card-not-present online payments will face higher effective processing rates than this baseline. Getting your actual processing costs to match that baseline requires achieving true parity between your advertised rates and your statement reality.

High volumes of low-cost physical card and debit transactions drive down that 1.87% average. TD lets businesses accept debit, credit, and digital wallets, covering Visa, Mastercard, Discover, American Express, UnionPay, Interac, Apple Pay, Google Pay, Alipay, and WeChat Pay. Card-not-present subscription billing lacks cheap in-person Interac debit volume. It also attracts a higher proportion of premium rewards credit cards. As a result, recurring billing costs routinely sit above the physical merchant average.

The TD agreement for eCommerce Webstore subscriptions dictates a minimum three-year contract term. This locks you into deactivation fees if you terminate early. Promotional hardware and gateway offers also bind you to a three-year merchant processing agreement. Terminating these accounts early results in charges for the value of provided equipment or credits. You avoid this clawback only if you process at least $20 within the first three full calendar months following approval. Hidden fees and contract lock-ins punish merchants who try to leave too soon.

You can escape contract deactivation fees without penalty under specific rules. You hold the right to cancel your agreement within 70 days of the effective date for new or increased Payment Card Network Operator (PCNO) or TD core fees. Merchants operating on non-fixed term agreements can cancel at any time without penalty. This makes scheduled fee increases an actionable cancellation window to jump ship.