The Financial Consumer Agency of Canada (FCAC) has released a review finding that some banking fee structures make total costs difficult to understand, anticipate and compare, with implications for affordability and competition. Requested in Budget 2025, the review identifies opportunities to improve transparency and give consumers personalized information about fees paid over time so they can better compare banking products and services. Multiple fees can apply to a single transaction, while foreign exchange and cross-border debit fees can be embedded in transaction costs. Charges based on usage also make costs harder to predict when consumers struggle to track transaction counts. Individually small fees can accumulate, leaving consumers without a clear picture of their banking costs. The findings will inform broader policy discussions on transparency, switching and competition, including the potential benefits of consumer-driven banking. The review follows the March 2026 introduction of rules capping non-sufficient funds fees at CAD 10 for personal deposit accounts at federally regulated banks, whose compliance FCAC oversees.
Financial Consumer Agency of Canada finds banking fee structures obscure costs and hinder comparison
The Financial Consumer Agency of Canada has found that overlapping, embedded and usage-based banking fees can obscure total costs and make comparisons harder. Its review identifies better transparency and personalized fee information as ways to help consumers compare options. Following earlier restrictions on non-sufficient funds fees, the findings will inform broader discussions on switching, competition and consumer-driven banking.