I found a link on Interac News that lead me to article recently published by
Canadians have a had a sweet deal with Interac pricing on debit transactions. If Visa and Mastercard are able to break into the debit processing industry in Canada, then Merchants will most likely have to expect an increase in debit transaction fees. This will most likely also affect consumers too because small business owners will need to raise their pricing to cover the additional costs.
Currently most merchants in Canada pay anywhere from 8 cents-15 cents per transaction when it comes to debit, however our southern neighbors (where Visa and Mastercard offer debit processing services) the average transaction fees on debit are 15 cents-30 cents. That’s quite the increase. We are talking billions of dollars more in fees to Merchants.
What can Merchants do about…?
Not sure.
But I wanted you to be away of this looming payment processing news. It should be interesting to see how this will play out. My guess is that Visa and Mastercard will break into the Canadian debit processing marketplace sooner than later.
