banking-and-credit · 🇨🇦 Canada

NSF Fee Refund — New $10 Cap and How to Get Fees Waived

Difficulty Easy Applies To All Provinces & Territories Last Updated 2026-03-15

NSF Fee Refund — New $10 Cap and How to Get Fees Waived

What Is It?

A non-sufficient funds (NSF) fee is charged when your bank returns a payment — a cheque, pre-authorized debit, or bill payment — because your account doesn’t have enough money to cover it. Canadian banks have historically charged up to $45–$50 per NSF incident.

As of March 12, 2026, new federal regulations cap NSF fees at $10 and add additional protections against repeat charges. If your bank charged you more than $10 after this date, the overcharge is illegal and you are entitled to a full refund of the excess — not just a courtesy waiver.

On top of these new legal protections, most major Canadian banks will also waive NSF fees on request, especially for customers in good standing experiencing their first or second incident.

Under the amended Financial Consumer Protection Framework Regulations, federally regulated banks cannot:

  1. Charge more than $10 per NSF incident on a personal deposit account (down from fees as high as $50)
  2. Charge an NSF fee more than once within 2 business days for the same account — even if multiple payments bounce in that window
  3. Charge an NSF fee if the overdraft amount is less than $10

These rules apply to all Schedule I and II banks and authorized foreign banks operating in Canada. The Financial Consumer Agency of Canada (FCAC) enforces compliance.

Note: These rules apply to personal deposit accounts, not corporate or business accounts.

How to Get Your NSF Fee Refunded

Step 1 — Check whether the fee was legal. If the fee was charged after March 12, 2026 and exceeds $10, the bank has overcharged you and must refund the difference — this is not discretionary.

Step 2 — Call your bank within 24–48 hours. The sooner you call, the better your chances of a full waiver. Use the numbers below.

Step 3 — Use this script:

“Hi, I noticed an NSF fee of $[AMOUNT] was charged to my account on [DATE]. I’ve been a customer for [X years] and this is my first time this has happened. I’d like to request a courtesy refund of this fee — is that something you can help me with?”

If the fee exceeded $10 and was charged after March 12, 2026, add:

“I understand that under the new federal NSF fee regulations that came into force March 12, 2026, NSF fees are capped at $10. This charge appears to exceed that limit, so I’d like the overcharge refunded.”

Step 4 — Ask for a supervisor if needed. If the first representative declines, ask: “Is there a supervisor or account specialist who can review this?”

Step 5 — File a complaint if the bank refuses. If the bank refuses to refund an overcharge on a post-March 2026 fee, file a complaint with the FCAC at canada.ca/fcac or call 1-866-461-3222.

Bank Contact Numbers

BankCustomer Service
TD Canada Trust1-800-983-8472
RBC Royal Bank1-800-769-2512
BMO Bank of Montreal1-800-263-2263
Scotiabank1-800-387-6466
CIBC1-800-465-4653

Call the number on the back of your debit card if your bank isn’t listed above.

What Most People Don’t Know

  • Most banks will waive the first NSF fee per year without question if you’re a long-standing customer with good history. They don’t advertise this — you have to call and ask.
  • The 2-business-day rule is new and significant. If three pre-authorized debits bounced on the same day before March 12, 2026, you could be charged $45–$150 in NSF fees. Now, you can only be charged once in any 2-business-day window, regardless of how many payments bounced.
  • The $10 minimum overdraft threshold is new. If you were $8 short and got an NSF fee, that is now prohibited.
  • FCAC complaints are taken seriously. Banks are required to have a complaint-handling process and must respond to FCAC complaints. Filing a complaint is often the fastest way to get an overcharge refunded.
  • Credit unions and caisses populaires are governed provincially and are not covered by these federal regulations — but many have similar or better policies. Contact your provincial regulator if you’re a credit union member.

Who Benefits Most?

Any Canadian with a personal chequing account at a federally regulated bank, particularly those who:

  • Were charged more than $10 in NSF fees after March 12, 2026
  • Were charged multiple NSF fees within the same 2-business-day window
  • Were charged an NSF fee when their overdraft was less than $10
  • Have never requested a courtesy waiver before
  • Financial Consumer Protection Framework Regulations — SOR/2021-181, as amended by SOR/2025-96 (March 12, 2026)
  • Bank Act — S.C. 1991, c. 46 (federal banking oversight)
  • Financial Consumer Agency of Canada Act — S.C. 2001, c. 9 (FCAC enforcement powers)

Frequently Asked Questions

My bank charged me $45 in NSF fees after March 12, 2026 — am I entitled to a refund of the excess?

Yes. Fees above $10 per NSF incident charged after March 12, 2026 are illegal under the new federal regulations. The bank is required to refund the overcharge — this is not discretionary. Call your bank, cite the Financial Consumer Protection Framework Regulations, and if they refuse, file a complaint with the FCAC.

Can I be charged multiple NSF fees if several payments bounce on the same day?

No. Under the new 2026 rules, a bank cannot charge more than one NSF fee within any 2-business-day window for the same account, regardless of how many individual payments bounce in that period. If you were charged multiple fees within 2 business days after March 12, 2026, you are entitled to a refund of all but the first $10 fee.

Do these $10 NSF fee caps apply to credit unions and caisses populaires?

No. The federal $10 cap applies only to federally regulated banks (Schedule I and II banks) under the Bank Act. Credit unions and caisses populaires are provincially regulated and are not covered by these specific rules. However, many credit unions have voluntarily adopted similar or more favourable policies — check with your provincial regulator or contact your credit union directly.

How many times will a bank waive an NSF fee as a courtesy?

Most major Canadian banks will waive NSF fees on request at least once per year for customers in good standing, though this is not a legal requirement — it is a discretionary goodwill gesture. There is no set limit, but repeated requests are less likely to succeed. Calling promptly (within 24–48 hours) and maintaining a long relationship with the bank improve your odds.

What if I was charged an NSF fee when I was only a few dollars short?

Under the 2026 regulations, banks cannot charge any NSF fee when the overdraft amount is less than $10. If you were charged a fee on a shortfall under $10 after March 12, 2026, you are entitled to a full refund. Report this to the FCAC if your bank refuses to reverse it.

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