What makes this industry different
Salons, barbers and spas share a few things that change which card fees matter:
- Tips. Often added at the end, sometimes after the card is approved.
- Bookings. Deposits, prepayments and no-show fees, often charged without the card in hand.
- Service prices. A haircut, a colour, a massage: sales that are often bigger than a coffee but smaller than a sofa.
A merchant category code (MCC) is a four-digit code that says what kind of business you are. Visa’s rules list 7230 as “Beauty and Barber Shops” and 7298 as “Health and Beauty Spas”. Ask your processor which code your business has.
Fees to know about in this industry
Visa: the Everyday Needs program. Visa Canada’s rate sheet has an “Industry Program” with lower rates for some kinds of business. Its “Everyday Needs” list includes MCC 7230: Beauty/Barber Shops and MCC 7298: Health & Beauty Spas.
| Visa consumer credit card | Everyday Needs (Visa’s sheet) | From Oct 22, 2026 (TD) | Standard in-person (“Electronic”) |
|---|---|---|---|
| Classic, Gold, Platinum | 1.10% | 1.10% (no change) | 1.25% |
| Infinite | 1.20% | 1.10% | 1.57% |
| Infinite+ | 1.35% | 1.35% (no change) | 1.60% |
| Infinite Privilege | 1.95% | 1.85% | 2.08% |
The “Visa’s sheet” column is Visa Canada’s own rate sheet, as read on October 22, 2026. The October 22, 2026 column is from TD’s Fee Change Summary (“CDN INFINITE ELEC EVERYDAY NEEDS” 1.20% to 1.10%; “CDN INFINITE PRIV ELEC EVERYDAY” 1.95% to 1.85%). Visa’s own sheet still did not show them when we checked on October 22, 2026.
These are interchange rates: what your processor pays your customer’s bank. What you pay depends on your pricing. See What Is Interchange? Smaller businesses may also qualify for Visa’s Small Merchant rates. See Visa’s Small Merchant Rates in Canada.
Interac tap. Interac’s Tier 1 low-ticket list does not include MCC 7230 or 7298. Unless a business qualifies for Tier 2 (at least 20 million Interac tap sales a year), it pays the Tier 3 interchange of $0.035 per tap sale up to $100, and $0.055 from $100.01 to $250. See Interac Debit: How It Is Priced.
Tips and the 20% rule
Visa’s rules have a table of how far the final (cleared) amount of a sale may be from the amount first approved (authorized). For MCC 7230 (Beauty and Barber Shops) and MCC 7298 (Health and Beauty Spas), it lists up to 20%, in all regions. Visa’s rules do not say what the difference is for. Ask your processor how tips added after approval are handled on your terminal. More on holds and tips: Tips and Pre-Authorizations.
Fees on tips. With a percentage fee, the tip is part of the amount charged, so the percentage applies to it too. Square’s support article says its fees “are taken out of the total amount of each transaction, including tax and tip.”
Deposits, prepayments and no-show fees
Booking software can take a card when a client books and later charge a deposit, a prepayment or a no-show fee. These charges are usually made without the card in hand. Published rates for card-not-present sales are often higher. On Visa Canada’s sheet, a Classic card is 1.25% in person and 1.40% card not present. Square lists 2.5% in person and 2.8% + 30¢ online.
Square Appointments (Canada) is one published example:
| Free | Plus | Premium | |
|---|---|---|---|
| Monthly price | $0 (single location) | $35 per month per location | $85 per month per location |
| Credit, in person | 2.5% | 2.5% | 2.5% |
| Debit chip and PIN or tap | 0.75% + 7¢ | 0.75% + 7¢ | 0.75% + 7¢ |
| Online: prepayments, no-show and cancellation fees | 2.8% + 30¢ | 2.8% + 30¢ | 2.8% + 30¢ |
| Keyed in or card on file | 3.3% + 15¢ | 3.3% + 15¢ | 3.3% + 15¢ |
| Prepayments | Included | Included | Included |
| Cancellation policy and fees | Not included | Included | Included |
Square describes its cancellation feature this way: “Require clients to cancel within a certain timeframe and provide their credit card information when they book. In the event of a no-show or late cancellation, charge a fee with the card information on file.”
Average ticket and why it matters
Your average ticket is your average sale: card sales divided by the number of card sales. The smaller it is, the more the cents part of a fee matters. Helcim’s in-person markup at its lowest volume tier, for example, is 0.40% + 8¢. On a $30 haircut the 8¢ is about 0.27% of the sale; on a $150 spa service it is about 0.05%. See Per-Transaction Fees.
Equipment and software options
Some providers bundle booking software with card processing, like Square Appointments above. Each provider lists its own hardware and software prices. See Equipment Leases, and the provider pages for Square and Helcim.
Contract terms to read closely
- Monthly fees for software and plans. See Statement and Monthly Fees.
- Chargebacks on no-show fees a client disputes. See Chargebacks.
- Surcharges. See Surcharging Credit Cards in Canada.
- Term and leaving fees. See Early Termination Fees.
Questions to ask a processor
- Which merchant category code will my business have?
- Do my Visa sales qualify for the Everyday Needs rate, and will I see that on my statement?
- How are tips added after approval handled?
- What rate applies to deposits and no-show fees charged to a card on file?
Where to go from here
On a statement, card-not-present sales (deposits, no-shows, keyed sales) are often listed apart from in-person sales, each with its own rate. How to Read Your Merchant Statement shows where they sit.
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