Most Canadian freelancers can collect payment in two or three ways that cover 95% of their actual clients. Here is an honest breakdown of the main options in 2026, what each costs, and which situations they suit best.
Interac e-Transfer — The Default for Canadian Clients
Interac e-Transfer is Canada’s most widely used payment method between individuals and small businesses. Free to receive at most Canadian banks. Clients use it from their own banking app — no account setup, no credit card required on their end. Autodeposit means payments arrive in your account without you needing to accept them manually.
Sending limits: Most personal accounts: $3,000 per transfer. Business accounts: $10,000–$25,000 per transfer depending on bank. Network maximum: $25,000 per transfer.
Best for: All Canadian clients paying invoices under $3,000 (or under your bank’s limit). Simplest, lowest-friction payment method available in Canada.
Not suitable for: International clients, credit card payment requests, subscriptions with automatic recurring billing.
Stripe — Best for Credit Card Acceptance
Stripe allows freelancers to accept credit and debit card payments online. Add a “Pay now” button to your FreshBooks or Wave invoice, or use Stripe’s payment link. Clients pay by card without leaving their email.
Fees (Canada, 2026):
- Canadian credit/debit cards: 2.9% + $0.30 CAD
- International cards: +1.5% (so 4.4% + $0.30 total)
- FX conversion to CAD: +1% (avoid by accepting payouts in USD directly to a USD account)
- No monthly fee, no setup fee
Best for: US and international clients who pay by credit card; clients who prefer not to use wire transfers; small recurring subscriptions or retainer billing.
Note: Stripe fees are significant for large invoices. A $5,000 invoice paid by international credit card costs the freelancer approximately $225 in Stripe fees. For single large B2B invoices, Interac e-Transfer or wire transfer is more economical.
PayPal — Available but Expensive
PayPal is widely known and available in most countries, making it easy for international clients to pay. However, PayPal’s fees and FX rates are among the most expensive in the industry.
Fees: 2.99% for domestic Canada transactions; 3.49% + fixed fee for international; PayPal’s currency conversion adds 3–4% spread on top of the transaction fee.
Best for: International clients who specifically request PayPal or are unfamiliar with alternatives. Not recommended as a primary payment method due to high total cost.
Wire Transfer (EFT/SWIFT)
Wire transfers are appropriate for large one-time invoices ($5,000+) where the percentage-based fees of Stripe or PayPal would be prohibitive. Most Canadian businesses and governments pay by EFT (electronic funds transfer).
Cost to client: $15–$50 CAD for outgoing wire depending on their bank. No fee to receive at most Canadian banks (though some charge $15–$20 incoming wire fees — check your account terms).
Best for: Large invoices to corporate or government clients who use EFT as their standard payment method.
Choosing Your Stack
Most freelancers need 2 methods:
- Interac e-Transfer: Canadian individual and small business clients
- Stripe or PayPal: International clients or any client who wants to pay by credit card
For USD-paying US clients in volume, pair Stripe with a Wise Business account to receive payout in USD directly (avoiding Stripe’s 1% FX fee) and convert at better rates through Wise.
Frequently Asked Questions
Do I charge GST/HST on top of my invoice price, including payment processing fees?
GST/HST is charged on the invoice amount — the payment processing fee is your cost, not the client’s tax. If you invoice $1,000 + $130 HST = $1,130, and the client pays by Stripe, Stripe charges you approximately 2.9% + $0.30 = ~$33. You receive $1,097 net. Your GST/HST remittance is still based on the $1,000 invoiced, and you owe the CRA $130 less any ITCs. The Stripe fee ($33) is a deductible business expense on your T2125.
Should I pass payment processing fees to clients?
Some freelancers add a credit card surcharge (“convenience fee”) or build it into their rates. Canadian law does not prohibit credit card surcharges by merchants. However, Visa and Mastercard’s merchant agreements do regulate surcharging practices. Most freelancers either absorb the fee, build it into their rate, or offer a discount for e-Transfer/wire to incentivize the lower-cost option.
Is Square useful for Canadian freelancers?
Square is strong for in-person payments (retail, events, food service) but less useful for pure service freelancers who invoice remotely. Square’s online invoicing charges 2.6% + $0.10 for card payments. For freelancers who rarely have face-to-face payment interactions, Stripe’s online toolset is more flexible.