Interac - Fees Explained

 

Fees
Explained

 

Interac Association

Products offered by Interac Association are Interac Cash and Interac Debit, which includes Interac Flash - the contactless enhancement of Interac Debit. Interac Association operates under an order issued by the Government of Canada’s Competition Tribunal (“Interac Consent Order”), which dictates that the Association must operate on a not-for-profit basis. This means that Interac Association charges only a fee to members that is sufficient to cover its operating costs. Interac Association members include Issuing financial institutions (FIs) that issue payment cards and other devices that provide customers with access to their bank accounts and Acquirers that provide connection and other related services to merchants and ABM owners/operators. The fee charged to Issuing FIs and Acquirers by Interac Association are wholesale rates. Interac Association does not charge any fees directly to customers and merchants.

An Interac payment or money transfer involves multiple parties that connect directly or indirectly to the Interac network and each of these parties may pay fees and/or charge fees. Here is a brief summary of the fees related to Interac Association products.

 

Interac Cash

fee explained cash en CA

Switch feeABM Acquirers and Issuing FIs that are members of Interac Association pay a wholesale, flat-rate switch fee for every Interac Cash transaction message that they send to the Interac network. It is an annual fee set on a cost recovery basis, and it is the only fee charged by Interac Association in connection with Interac Cash transactions. Click here for the current rate.

Interchange fee Interchange is a fee that a customer’s financial institution pays to the ABM Acquirer and it is intended to compensate the ABM Acquirer or ABM owner/operator for the service of providing cash to the Issuing FI’s customer. It is paid for every approved cash withdrawal transaction processed through the Interac network. While Interac Association has a role in setting the interchange fee rate, it does not receive any revenue from this fee. Click here for the current rate.

Surcharge fee ABM owners/operators may impose a surcharge (e.g., $2.00) on customers that use their ABMs. An ABM surcharge fee is also known as a convenience fee. As prescribed by the Interac Consent Order issued by the Competition Tribunal, Interac Association may not restrict the levying of a surcharge. If imposed, the surcharge amount must be properly disclosed to the customer, and the customer must be provided with the option of cancelling the transaction without cost if they do not wish to pay the surcharge. The amount of the surcharge is determined at the discretion of each ABM owner/operator.

Acquirer processing fee ABM owners/operators pay a processing fee to the ABM Acquirer that provides them with connection services to the Interac network and the fee may include costs related to other services. The fee varies depending on individual contracts that ABM owners/operators have with their ABM Acquirers or connection service providers.

FI transaction/account fee Customers may be charged a fee by their financial institution (FI) directly from their bank account for Interac Cash transactions (i.e., use of an ABM for a cash withdrawal that is not operated by their own FI). The application and amount of these fees vary and reflect the individual business decisions made by each individual FI. FIs may also charge a regular transaction account fee for Interac Cash transactions. These FI transaction/account fees may be included in a customer’s bank account package offered by their FI.

 

 

Interac Debit (including Interac Flash)

fee explained debit en CA

Switch fee POS Acquirers and Issuing FIs that are members of Interac Association pay a wholesale, flat-rate switch fee for every Interac Debit transaction message that they send to the Interac network. It is an annual fee set on a cost recovery basis, and it is the only fee charged by Interac Association in connection with Interac Debit transactions. Click here for the current rate.

Interchange fee Interchange is a fee that a POS Acquirer pays to the customer’s financial institution to balance the costs and benefits of offering the service to customers. Interchange for Interac Debit is currently set at zero. Beginning April 2016, a new interchange pricing structure will be introduced for Interac Flash. While Interac Association has a role is setting the interchange fee rate, it will not receive any revenue from the fee. Click here for more information on the current rates.

Surcharge fee Merchants may choose to impose a surcharge onto customers on top of purchase amounts. Surcharging for Interac Debit transactions is not a common practice and the decision to levy a surcharge varies from one merchant to another. As prescribed by the Interac Consent Order issued by the Competition Tribunal, Interac Association may not restrict the levying of a surcharge. If imposed, the surcharge amount must be properly disclosed to the customer, and the option of cancelling the transaction without cost must be provided to the customer.

Acquirer processing feeMerchants pay a processing fee to the POS Acquirers that provide connection services to the Interac network, and the fee may include costs related to other services. The fee varies depending on individual contracts that merchants have with their POS Acquirers or connection service providers.

FI transaction/account fee Customers may be charged a regular transaction account fee by their financial institution (FI) directly from their bank account for Interac Debit transactions. The application and amount of this fee varies and reflect the individual business decisions made by FIs. The fee may be included in a customer’s bank account package offered by their FI.

 

 

Acxsys Corporation

Other Interac products such as Interac e-Transfer and Interac Online are offered by Acxsys Corporation, which operates on a for-profit, competitive market basis. Acxsys Corporation charges low-cost fees to participants of its services, which include Issuing financial institutions (FIs) and Acquirers that provide connection services to merchants. The fee charged to Issuing FIs and Acquirers by Acxsys Corporation are wholesale rates. Similar to Interac Association products, Acxsys Corporation does not charge fees directly to customers and merchants.

An Interac payment or money transfer involves multiple parties that connect directly or indirectly to the Interac network and each of these parties may pay fees and/or charge fees. Here is a brief summary of the fees related to some Acxsys Corporation products.

 

Interac e-Transfer

fee explained etransfer en CA

FI service feeFinancial institutions (FIs) pay to Acxsys Corporation a flat-fee that is based on tiered transaction volume for each Interac e-Transfer they send on behalf of their customers. The fee charged to FIs is a wholesale rate.

FI transaction/account feeFinancial institutions (FIs) may charge their customers a fee (e.g. $1.50) for sending an Interac e-Transfer. At their discretion, FIs may also charge customers a fee for receiving an Interac e-Transfer. The application and amount of these fees vary and reflect business decisions made by each individual FI. FIs may also charge their customers a regular transaction account fee for Interac e-Transfer transactions. These FI transaction/account fees may be included in a customer’s bank account package offered by their FI.

 

 

Interac Online

fee explained online en CA

Acquirer service feeAcquirers pay to Acxsys Corporation a flat-fee for each completed transaction based on the customer’s purchase amount and merchant sector. The fee charged to Acquirers is a wholesale rate. Click here for the current fee schedule.

Acquirer processing fee Online merchants pay a processing fee as set by their Acquirer or payment service provider. This fee varies depending on individual contracts that merchants have with the Acquirer or the payment service provider that connects them to the Interac Online service, and the fee may include costs related to other services.

FI transaction/account feeCustomers may be charged a regular transaction account fee by their financial institution (FI) from their bank account for Interac Online transactions. The application and amount of the fee varies and reflect the individual business decisions made by FIs. This fee may be included in a customer’s bank account package offered by their FI.