They are (at least according to rule 5 here: http://www.fcac-acfc.gc.ca/Eng/forIndustry/publications/Laws...). Not sure why I haven't seen it in practice; maybe the regulation is new like the American equivalent. I'm not a fan of making it a discount vs allowing merchants to charge a surcharge though.

Mountain Equipment Coop use to have give a discount if you didn't pay with a credit card. They eliminated it saying it wasn't fair to people buying online.

I've seen some gas stations do this. Usually 3 cents off a litre if you pay cash or debit.

I saw it once at a small computer store in Ottawa in 2008.