The Financial Consumer Agency of Canada (FCAC) estimates that non-sufficient funds (NSF) fees exceeded C$1 billion in 2025, highlighting the cost of failed payments before federal limits took effect. The agency said NSF fees were the highest consumer cost among the account-service charges for which it collected data.
Before the rules began in March 2026, one NSF charge generally ranged from C$45 to C$48. The regulations cap the NSF fees banks charge on personal deposit accounts at C$10. They also prevent a second NSF charge on the same account within two business days and prohibit the fee when the shortfall is less than C$10.
A rejected payment may bring another charge from its recipient. FCAC says recipients can include merchants, property owners, utilities and lenders; merchants typically charge C$20 to C$40 for a declined transaction. The agency characterizes NSF fees mainly as a behavioral incentive and says the marginal cost of processing them is relatively low.
FCAC also raised the possibility that accumulated fees weigh more heavily on people with lower incomes, limited savings or greater reliance on day-to-day banking. Its review did not measure effects across consumer groups. The agency used banks’ fee schedules and account agreements, industry data from 2023 to 2025, Ipsos survey data and focus groups.
To help customers see what they pay over time, FCAC proposes requiring federally regulated deposit-taking institutions to issue a standardized yearly summary of charges on personal deposit accounts. The review points to the European Union’s annual fee summary as an example, but sets no date for a Canadian requirement. Commissioner Shereen Benzvy Miller said clear information can help consumers make decisions that suit them.
The review also examined other charges and obstacles to comparing providers, as covered in earlier reporting on its broader findings.
