Paying Condo Fees by Credit Card in Quebec

Paying common expenses by credit card is becoming increasingly popular among co-owners. In a divided co-ownership, syndicates are looking for reliable ways to collect condo fees on time while simplifying management. Is it permitted in Quebec? Yes, in many cases, but within clear boundaries.

This guide explains what the Civil Code of Quebec permits, the advantages and limitations of credit cards, the budgetary and accounting impacts, and how to adopt a collection policy that stands up. You will also find alternatives and best practices for the board of directors.

Is it permitted in Quebec? The legal framework in brief

• The Civil Code of Quebec requires each co-owner to contribute to the common expenses, according to the terms set out in the declaration of co-ownership and the by-laws of the immovable (see section 1064 C.C.Q.). It does not prescribe a single payment method.
• In practice, the board of directors may offer and regulate payment methods (cheque, pre-authorized debit, bank transfer, credit card), provided they comply with the declaration of co-ownership, the by-laws and resolutions adopted at the annual general meeting.
• If additional fees are charged for a specific method (e.g., processing fees), this must be authorized by the co-ownership documentation and clearly communicated. Depending on your declaration of co-ownership and the Civil Code of Quebec, certain measures may require a vote by the co-owners.
• Contributions to the contingency fund and operating expenses remain payable by the established deadlines; accepting payment by credit card affects neither the obligation to pay nor the remedies available in the event of default (e.g., interest, formal notice), always subject to the declaration of co-ownership and applicable laws.

Useful references:
LégisQuébec – Civil Code of Quebec, contribution to common expenses (section 1064)
LégisQuébec – Civil Code of Quebec, contingency fund (section 1072)

Advantages and limitations of credit card payments

Potential advantages for the syndicate and the board of directors:

• More regular collections: cards facilitate recurring payments, which may reduce late payments.
• Co-owner experience: the card option aligns with digital habits and may improve satisfaction.
• Traceability: platforms provide useful reports for bank reconciliations and financial statements.

Limitations and risks to consider:

• Interchange and processing fees: these fees reduce common expense revenue if the syndicate absorbs them.
• Chargebacks: a dispute may delay a payment or require administrative follow-up.
• Deposit delays: depending on the provider, funds are not always deposited the same day.
• Governance: without a clear, approved and communicated policy, management may become inequitable or lead to disputes.

Management tip: record decisions in the board of directors’ minutes, and make sure the information is circulated before the annual general meeting, with a reminder in the notice of meeting or the documentation provided.

Fees, surcharges and accounting: what should you plan for?

• Who absorbs the fees? There are two approaches: the syndicate absorbs card fees within its budget, or it charges a “convenience fee” to the co-owner who chooses this method. The second approach requires a solid framework in the declaration of co-ownership/by-laws and transparent communication.
• Accounting treatment: processing fees are usually recorded as “bank charges” or “collection fees.” They do not affect the amount payable to the contingency fund, but they reduce the operating budget’s room to manoeuvre.
• Sales taxes: depending on the payment service provider and the syndicate’s tax status, taxes may apply to fees charged to the syndicate. Whether GST/QST can be recovered depends on the syndicate’s registration and status, which varies from one building to another. Refer to Revenu Québec’s guidelines.
• Transparency: clearly state the applicable fees, deadlines and remedies in the event of default. Avoid any practice that could be perceived as abusive.

Resources:
RGCQ – Best practices in co-ownership governance
Revenu Québec – GST/QST for businesses and organizations

Budgetary impact: illustrating the choices

Even a small percentage in card fees can amount to several thousand dollars per year. Before adopting this method, assess the combined effect on:

• The collection rate and payment delays
• Total projected bank charges
• Contributions to the contingency fund and maintenance of the maintenance logbook/contingency fund study

Putting a collection policy in place: key steps

1) Map your needs and risks

• Analyze your cash flows (number of units, average monthly payment, seasonality of expenses for common portions and private portions).
• Review your declaration of co-ownership and the by-laws of the immovable for provisions on payment methods, interest, fees and the approval thresholds required.

2) Choose methods and thresholds

• Define the methods accepted: cheque, pre-authorized debit (PAD), bank transfer, credit card and online platform. Specify the limitations (e.g., one-time versus recurring payments, cash advances excluded).
• Set the conditions: deadlines, interest, applicable processing fees and dispute procedures.

3) Formally adopt and communicate the policy

• Have the board of directors adopt the policy, or the annual general meeting if your declaration of co-ownership requires it for certain elements. Record everything in the minutes.
• Send the policy to co-owners with an FAQ. Remind them of the impacts on the budget and contingency fund, and attach a step-by-step guide for registering for the selected method.

4) Equip accounting and follow-up processes

• Configure your software to allocate fees correctly and facilitate the preparation of financial statements.
• Document proof of payment and reconciliations. Have a contingency plan in place if the platform becomes unavailable.

Useful clauses to include in your policy

• Accepted and non-accepted methods (e.g., no credit card cash advances)
• Applicable fees and calculation basis, if applicable
• Deadlines, interest, notices and formal notice
• Handling of disputes and chargebacks
• Handling of payments allocated to the contingency fund
• Grace period and procedures in the event of a major loss

For an overview of financial and administrative management, see our services: https://www.multirent.ca/services/#gestion-financiere and https://www.multirent.ca/services/#gestion-administrative.

Payment alternatives and best practices

Here is a comparative overview to help guide your choice.

Cross-functional best practices:

• Centralize communication: standard email, automated reminders, simple instructions and one link.
• Document every policy change and keep the versions in your corporate register.
• Align the policy with the annual budget, maintenance plan and contingency fund program.

Additional official resources:
LégisQuébec – Civil Code of Quebec (divided co-ownership, general provisions)

FAQ

Can the syndicate require credit card payment as the only payment method?

This is not recommended. The Civil Code of Quebec does not require a single method; favour reasonable, accessible options that are properly governed by the declaration of co-ownership and the by-laws. Offering several methods reduces the risk of exclusion and disputes.

Are points or rewards earned by a co-owner taxable?

As a general rule, personal rewards programs do not create an immediate tax liability, but the situation varies depending on the circumstances. For specific tax treatment, refer to Revenu Québec’s guides and consult a professional.

Can processing fees be charged for card payments?

Yes, provided there is a clear documentary basis (declaration of co-ownership, by-law or resolution) and transparent communication. Also verify contractual compliance with your payment provider and, if necessary, obtain legal advice.

This article provides general information and does not constitute legal advice. Consult a lawyer or notary regarding your situation.

This article provides general information and is not a substitute for advice from a tax specialist or accountant. Refer to Revenu Québec and the CRA for the exact rules.

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To learn more about operations management, also visit: https://www.multirent.ca/services/#gestion-des-operations and browse our blog: https://www.multirent.ca/blogue/.