The Interac network is Canada’s only domestically run, coast-to-coast debit system, handling approximately 54 per cent of all card payment transactions in Canada at point-of-sale. Interac Debit is low-cost, has no chargebacks and offers peace of mind of real-time, secure payments.
Over 80% of card-present retail transactions and 50% of sales volume are performed over the Interac network. This accounts for over 160 billion dollars in transaction volume each year. First Data retail and restaurant merchants using in-store terminals are automatically eligible to accept debit transactions.
For example, when a customer pays with Debit, a merchant typically pays 5 or 6 cents per transaction to its payment processor – a single flat fee, regardless of retail purchase price. From that amount, the Interac Association receives a fee of $0.006362. In comparison, if the person chooses credit, the merchant typically pays from 1.5% to 3% of the item’s retail cost for interchange alone, not including other possible processing fees. As a result, on a $100 purchase, based on current rates, a merchant pays between $1.50 and $3.00 for the interchange on a credit card transaction, but only a flat fee of $0.06 for an Debit transaction.
Interac Flash (Tap & Pay)
Interac Debit now supports NFC (Tap & Pay) transactions through their Flash program. Although initially a free feature, Interac now charges an extra 2¢ to Convenience Stores and Fast-Food businesses, and an extra 3.5¢ per transaction to other industry types for using this service. Canada First passes this fee increase to our clients at cost without any additional markups on top of your standard transaction rate. Flash is an optional feature with all First Data payment processing terminals, simply contact us to turn it off or on.
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