Interac Surcharge 

As of January 26, 2024, Interac rules limit the SURCHARGE amount on Interac Debit transactions to a maximum of $0.25 per transaction.  For additional details, please visit Interac's support page on understanding fees:  https://www.interac.ca/en/business/support/understanding-fees/

Interac Pass Through Fees
 

Interac Switch Fee

As a result of the fee change announced by Interac Corp., the Interac Switch Fee which is passed through to you is changing from $0.0145 per transaction to $0.0129 per transaction effective April 1, 2024, a reduction of $0.0016 per transaction.  We are pleased to inform you that the full savings will be passed through to you.

Visa Pass Through Fees
  

Visa CVV2 Fee

CVV2 is a service used primarily in CNP transactions to confirm both that the cardholder has the card in their possession and that the card is genuine. Issuers and merchants use the CVV2 match result as part of authorization processing to help decide whether to proceed with the transaction. CVV2 is also used in zero-amount account verification messages to prevent storage of an invalid credential in merchant credential-on-file systems. A positive CVV2 match correlates with higher approval rates, reduced fraud, and fewer disputes.

Effective April 1, 2024, Visa Canada will charge a fee of USD 0.0028 billed in Canadian equivalent will be assessed per transaction.

Visa Commercial Solutions Fee for Visa Business Solutions

Effective 1 April 2024, Visa will introduce the Commercial Solutions fee, a 0.01% assessment which will be calculated on sales volumes from transactions made with Visa Business Solutions products, as detailed below:

Mastercard
 

Mastercard Revised Excessive Authorization Attempts Transaction Processing Excellence Program

To drive positive processing behaviour and reduce excessive authorization attempts, Mastercard is introducing a new threshold as follows:  35 declined attempts on the same account number (i.e., card), at the same card acceptor (i.e., merchant), and for the same amount within a 30-day period.

Effective April 1, 2024, Mastercard will assess a rate of $0.50 USD and billed in Canadian equivalent per identified declined transaction.

Visa Pass Through Fees
 

Visa B2B (Virtual) Payments Program

Designed to enable online travel agencies (OTAs), travel service providers, and other travel payment providers to use virtual accounts to pay their suppliers for inventory, effective November 1, 2023, all Visa B2B Virtual transactions will be subject to the below Service Fee imposed by Visa that we pass through to you.  This program applies to select Merchant Category Codes (MCCs) that are listed below.

Visa Non-Chip Terminal Use Compliance Program

Previously published January 1, 2020, on the SMESSAGES page, Visa introduced the Non-Chip Terminal Compliance Program to promote the use of EMV terminals with non-compliance fines of USD $0.1695 per transaction.  Effective October 1, 2023, Visa will begin to assess the non-compliance fines of USD $0.1695 per transaction when a non-EMV enabled terminal is used.  To avoid this non-compliance fine, kindly ensure your terminal is EMV enabled.

New Processing Integrity Program Fees Will Be Assessed in Canada

Effective January 1, 2024, Visa will begin compliance monitoring for the Processing Integrity Program in Canada with the introduction of two new fees.  The Visa Processing Integrity Program requires all transactions require 1) a valid authorization, and 2) approved authorizations must be cleared (or reversed) to reduce cardholder impacts caused by erroneous authorizations and force post transactions.

The following Processing Integrity Program fees will be assessed on domestic and international sales and refund transactions that are not authorized, reversed or cleared as required:

• The Misuse of Authorization System fee will be assessed to approved and partially approved authorization transactions that cannot be matched to a clearing transaction or authorization reversal at a rate of USD 0.0565 per transaction.
• The Unmatched Clearing fee will be assessed to clearing transactions that cannot be matched to previously approved or partially approved authorization transactions at a rate of USD 0.0565 per transaction.

To avoid Processing Integrity Program fees:

• Obtain an authorization prior to submitting clearing transactions.
• Submit an authorization request only for valid transactions.
• Process reversals for cardholder-canceled transactions and/or authorizations submitted in error in a timely fashion.
• Use a zero-amount account verification to verify an account when authorization is not requested (e.g., when storing credentials separately from a purchase).
• Clear transactions within the authorization validity periods defined in the Visa Rules.
• Reverse authorizations that will not be cleared within a defined time frame.
• Properly authorize merchandise returns and clear the transaction within a defined time frame.
• Retain key data elements from the authorization in the clearing transaction or reversal message, including but not limited to the transaction identifier.

Mastercard Pass Through Fees

Mastercard Wholesale Travel B2B (Virtual) Payments Program

The Mastercard Wholesale Travel Program is designed to allow payments between travel buyers and suppliers, such as travel agents, airlines, and hotels using a virtual card.  All Merchant Category Codes (MCCs) can accept Mastercard’s Wholesale Travel B2B virtual cards.  Effective November 1, 2023, all Mastercard Wholesale B2B virtual transactions will be subject to the below Service Fee imposed by Mastercard that we pass through to you.

Mastercard Enterprise Solutions—Freight Program

The Mastercard Freight Program is designed to allow participating businesses to make payments linked to the distribution of freight utilizing virtual Mastercard account numbers. 

To qualify for this program, freight transactions must meet the following qualifying criteria:

• Freight transactions between shippers, freight forwarders, consignees, freight handling agents, customs brokers, and other suppliers in the freight ecosystem
• Transacted using a virtual Mastercard account numbers
• Limited to the following card acceptor business codes (MCCs) within freight industry
• Must not be applied to domestic arrangements in markets that have regulated interchange or are targeted at such markets

Effective November 1, 2023, all qualifying Mastercard Freight transactions will be subject to the below Service Fee imposed by Mastercard that we pass through to you.

Changes to Mastercard Transaction Processing Excellence Programs in the Canada Region

To drive positive transaction processing behaviours, Mastercard is increasing its non-compliance fees associated with the Transaction Processing Excellence (TPE) program as noted below.  To avoid non-compliance fees, ensure all transactions are correctly formatted, authorized, and settled as required.  For best practices, kindly refer to our Payment Acceptance Guide available on https://merchants.fiserv.com/en-ca/client-support/getting-started/.

Mastercard Authorization Optimizer Service Pricing for Card-Not-Present Transactions in Canada

To enhance approval rates for authorization retries in card-not-present transactions, Mastercard has introduced new decline reason codes. Effective November 1, 2023, a fee of USD 0.0226 will be associated with these new decline reason codes. To avoid incurring the fee, merchants should take the appropriate actions if a transaction is declined with one of the following response codes.

Discover Pass Through Fees

Discover International Processing Fee

Effective November 1, 2023, all non-Canadian issued Discover Financial cards accepted will be subject to the International Processing Fee of 0.40% imposed by Discover that we pass through to you.

Interac Pass Through Fees

Interac Flash Interchange Rates Effective November 1, 2023

Effective November 1, 2023, Interac Flash transactions $100 or less originating from merchants with MCC 4784 (Toll Roads/Bridges) will qualify for Tier 1 Interchange Fee which is currently set at $0.02 per transaction. 

Network Pass Through Fees

As a result of changes imposed by the Government of Canada on fees charged by the Payment Card Networks, we are passing though to you the additional cost we are subject to.  Effective November 1, 2023, the following fees will change as follows:

Interac Pass Through Fees

Interac Switch Fee

As a result of the fee change announced by Interac Corp., the Interac Switch Fee which is passed through to you is changing from $0.0107 per transaction to $0.0145 per transaction effective April 1, 2023, a change of $0.0038 per transaction. You are impacted only if you accept Interac Debit cards.

Visa Pass Through Fees

Visa Account Verification

An Account verification message, an optional transaction type, is used to verify the status of an account prior to an authorization, or when authorization is not required, e.g., when storing credentials on file or when accepting an order requiring inventory check.  Account verifications provide merchants increased confidence that the card is valid and in good standing, help prevent the storage of invalid credentials in merchant credential-on-file systems and may lead to higher approval rates for subsequent authorization requests.

Effective April 1, 2023, Visa Canada will charge a fee of $0.01 USD for each domestic (Canadian issued card) account verification message, and $0.02 USD for each international (non-Canadian issued card) account verification message.

Visa Estimated and Incremental Authorizations

An estimated authorization request, an optional transaction type, is most commonly used by lodging, rental, and cruise merchants, also referred to as a preauthorization, allows a merchant to obtain an approval for funds before a cardholder has identified exactly what good or services will be purchased. Within that same transaction journey, if the initial estimated amount is insufficient, a merchant may then submit an incremental authorization to increase the total authorized funds.

The use of estimated and incremental authorizations is entirely optional for merchants. To ensure the purchase transaction meets all requirements and is not exposed to disputes or other liabilities, a merchant that chooses to submit them must:

• Include all required indicators in the authorization message to identify it as an estimated authorization or incremental authorization.
• Submit an estimate that represents a genuine amount the merchant believes the cardholder will spend for goods or services. Over time, merchants can leverage their data to submit the most ideal estimated authorization amount for each customer.
• Not use an authorization request as a means of cardholder verification, i.e., submitting an estimate for low currency value amounts.

Effective, April 17, 2023, Visa will charge a fee of 0.02% for Estimated Authorizations, and 0.02% for Incremental Authorizations.

Amex OptBlue Wholesale Rate (also referred to as Interchange) for Foreign Issued Cards

Amex OptBlue Rate Changes

Interchange is the amount that Acquirers are required to pay Card Issuers for each transaction.  Interchange rates are set and regulated by the Payment Card Networks.  Effective April 14, 2023, American Express will increase the Interchange Rates for foreign issued Amex cards by 0.20% as noted below.

American Express Wholesale (Interchange) Rates

Mastercard Canada Pass Through Fees

Mastercard Canada Interchange Rates Changes

Interchange is the amount that Acquirers are required to pay Card Issuers for each transaction.  Interchange rates are set and regulated by the Payment Card Networks.  Effective May 8, 2023, the following Mastercard Interchange Rates are changing as noted below.

From:

To:

Message for Merchants on Merchant Discount Rate (MDR) Pricing Plan

This message applies to merchants who are on our Merchant Discount Rate (MDR) pricing plan (also referred to as the Discount Rate pricing plan).

The Merchant Discount Rate is the fee structure we charge you for accepting payments by way of credit or debit cards.  Your Merchant Discount Rate remains unchanged as a result of the Interchange changes announced by American Express and Mastercard above. 

Message for iPlus – Interchange Plus – Priced Merchants

This message applies to merchants who are on our Interchange Plus (iPlus) pricing plan (also referred to as the Cost Plus pricing plan).

If you are an Interchange Plus (iPlus) priced merchant, the full changes of the Interchange rate changes announced by American Express and Mastercard above will be passed through to you in the cost of the Interchange fee you pay. 

Message for Flat Rate Priced Merchants

This message applies to merchants who are on our Flat Rate pricing plan.

If you are a Flat priced merchant, there is no impact to your fees as a result of the Interchange changes announced by American Express and Mastercard above.

Both Mastercard and Visa are changing their rates and program IDsfrus Refer below for details.  

Mastercard Pass Through Fees Effective March 13, 2023

Effective March 13, 2023, Mastercard will introduce the Digital Enablement Fee (DEF) at 2.0 bps (0.02%) on all Canada acquired Card Not Present approved authorization transactions with a minimum billing of USD 0.02 and a maximum of USD 0.20 per transaction.  As a result of Mastercard introducing the Digital Enablement Fee, we will pass through to you the Mastercard Digital Enablement Fee.  One basis point is equivalent to 0.01% (1/100^th of a percent).

Effective March 13, 2023, Mastercard will remove the fees for the following services:

·       Automatic Billing Updater

·       3DS Secure Code

·       Address Verification Service

·       CVC2

·       Account Status Inquiry

·       Digital Commerce Development Fee

As a result of Mastercard removing the fees associated with the above services, Fiserv will stop passing through the above fees in kind.

Visa Pass Through Fee

Visa Non-Domestic Settlement Charges Effective November 1, 2022

Effective Oct 14, 2022, Visa will introduce 2 new fees for all settlements made in a currency other than Canadian dollars for all transactions associated with cross border transactions.  The two new fees will impact merchants who process Visa transactions not settled in their domestic currency. The fees do not apply to Visa Direct credit transitions.  Merchants receiving settlement funds in Non-Canadian Currency are impacted as follows:

1. Visa Non-domestic Settlement Fee at 10 bps

2. Visa Multi-currency Non-domestic Settlement Fee at 10 bps

(Note: If multiple currency settlement configuration is set up, the Multi-currency Non-domestic Settlement Fee will apply instead of the Non-Domestic Settlement Fee.)

As a result of Visa introducing the Non-Domestic Settlement Fee and Multi-currency Non-domestic Settlement Fee, we will pass through to you the applicable fee starting November 1, 2022.  One basis point is equivalent to 0.01% (1/100^th of a percent).

Visa B2B Virtual Interchange Update

Effective Oct 14, 2022, Visa is introducing new interchange rates for the B2B Program IDs (card types) as part of their B2B Virtual Payments program. In addition, Visa has extended eligibility of the program to merchants in the merchant category codes (MCCs) outlined below.  The update will impact merchants who accept transactions initiated with virtual Visa account numbers under Visa’s B2B Virtual Payments program.

New Program IDs:

New MCCs:

Visa Large Commercial Ticket Interchange Update

Merchants on Merchant Discount Rate (MDR) Pricing Plan

Effective October 14, 2022, Visa will implement changes to their Straight Through Processing (STP) service for commercial and corporate card transactions. These changes will impact merchants who use the STP service for Visa transactions.

STP interchange rates for large ticket transactions will be retired. Going forward, new large ticket interchange rates will apply. For transactions that do not qualify for the new large ticket rates, existing corporate and purchasing rates will apply. Rates have been outlined below.

The retired interchange rates are as follows:

The new large ticket interchange rates are as follows:

Existing corporate and purchasing rates outlined below will apply for transactions that do not qualify for the new large ticket interchange rates:

Amex OptBlue Changes Effective October 14, 2022

Effective October 14, 2022, American Express will introduce new industry categories as well as revise the merchant category codes (MCCs) that fall into the applicable industry categories. In addition, American Express will update the wholesale rate structure for the existing Healthcare industry category. The new wholesale discount programs, revised MCCs, and updates to the Healthcare program have been outlined below.

New wholesale rate programs

Revised Healthcare Rates

Revised MCCs by Industry Category

Interac Pass Through Fee

Interac Flash Interchange Rates Effective November 1, 2022

Effective November 1, 2022, Interac will be introducing a new Interchange rate (Tier 4) for Interac Flash debit transactions.  The Interchange rate for all Interac Flash transactions between $100.01 - $250.00 will be $0.055 per transaction regardless of MCC.  The Interchange rates for Tiers 1, 2 and 3 remain unchanged.

Interac^®, Visa^® and Mastercard^® fees are changing and/or adding some new fees. 

Interac^® Switch Fee

As a result of the rate change announced by Interac Corp., the Interac Switch Fee is changing from $0.0102 per transaction to $0.0107 per transaction, a change of $0.0005 per transaction effective April 1, 2022.  You are impacted only if you accept Interac Debit.  For more information, visit www.interac.ca/en/fees-explained.html.

Visa^®Address Verification Service Fee

As a result of the new fee Visa will introduce for the Address Verification Service (AVS), merchants electing to use this optional service will be charged a fee of USD 0.001 (billed in CAN equivalent) per transaction effective April 1, 2022. Address verification enables merchants to verify a cardholder’s billing address with their issuing bank for card-not-present transactions. Issuers and merchants use the match result as part of the authorization decisioning process, and to help decide whether to proceed with the transaction.

Mastercard^® Fees

Effective  April 1, 2022, merchants electing to use this optional identity check service will be subject to a fee of 0.01% or maximum of USD $0.10 (billed in CAN equivalent) per transaction which will appear as “SECURECODE TRANSACTION FEE” on their merchant statement.  The objective of the optional Mastercard Assurance Framework is to secure the digital card-not-present ecosystem through the adoption of 3-D Secure (3DS) Mastercard Identity Check (formerly known as MasterCard 3DS Authentication) to protect cardholders and merchants from fraud losses.

Account Status Inquiry

Effective  April 1, 2022, merchants electing to use this optional service will be subject to a fee of USD 0.025 (billed in CAN equivalent) per transaction for Canadian issued Mastercard, and USD 0.03 (billed in CAN equivalent) for non-Canadian issued Mastercard which will appear as “MC CAN ACCT STATUS INQ INTRARE and MC-CAN ACCT STATUS INQ INTERRE” on their merchant statement.  An Account Status Inquiry is an optional service that allows merchants to validate that a cardholder account is open, and the account is not listed in the Electronic Warning Bulletin without negatively affecting a cardholder’s funds availability.  The service is typically used when establishing a recurring or bill payment relationship, validating a card-not-present purchase before fulfillment, or before submitting an authorization request for the full amount of a recurring payment.  

Address Verification Service

Effective April 1, 2022, merchants electing to use this optional service will be subject to a fee of USD 0.01 (billed in CAN equivalent) per transaction which will appear as “MC AVS ACQUIRER ACCESS FEE and MC AVS CARD NOT PRESENT” on their merchant statement.  Address Verification Service (AVS) is a fraud deterrent service that provides greater security to merchants. It helps to protect against fraudulent use of cards by verifying the cardholder’s billing address.  

Card Validation Code 2 (CVC 2)

Effective April 1, 2022, merchants electing to use this optional service will be subject to a fee of USD 0.0025 (billed in CAN equivalent) per transaction which will appear as “MC CVC2 FEE” on their merchant statement.  Card Validation Code 2 (CVC 2) is a service that can help reduce the risk of fraud by facilitating the card authentication during the authorization process. The MasterCard CVC 2 is part of the screening tools used by merchants to ensure that the person placing the order has the card.  CVC 2 helps merchants identify the probability of risk and flagging transactions that might need manual review.  

Digital Commerce Development Fee

Effective  April 1, 2022, you will be charged 0.0226% per transaction which will appear as “MC-Canada E-commerce Fee” on your merchant statement.  You will only be impacted if you process e-commerce transactions such as standing orders, recurring payments, card-on-file transactions and/or accept payments on your website.

Mastercard introduced the Digital Commerce Development Fee on all Mastercard e-commerce transactions in 2018.  Mastercard defines an e-commerce transaction as a non-face-to-face payment for goods or services by use of electronic media over a public network such as the internet, or private network such as an extranet.  

Mastercard Connectivity Fee

Effective April 1, 2022, you will be charged at a rate of USD 0.0000079 (billed in CAN equivalent) per byte rounded up to the nearest kilobyte which will appear as “MC AUTH CONNECTIVITY FEE and MC CLEAR CONNECTIVITY FEE” on your merchant statement.  As guidance, a typical card present transaction consumes approximately 1,000 bytes. 

Both Mastercard and Visa are reducing their rates in August and October respectfully. Refer below for details.  

Mastercard Canada Fee Changes

On August 1, 2021, Mastercard Canada will reduce its Interchange Program Rates* as indicated below.

*Interchange is the amount that Acquirers are required to pay to Card Issuers (banks such as RBC, TD, BMO, Scotiabank) for each transaction. Interchange rates are set and regulated by the Payment Card Networks (Visa and Mastercard, etc.) and not the Acquirers.

NOTE:  If you are unsure of your pricing plan, refer to the How to Determine your Pricing Plan section or call our HelpDesk at 1-888-263-1938 anytime.

Merchants on Merchant Discount Rate (MDR) Pricing Plan

The Merchant Discount Rate is the fee structure we charge you for accepting payments by way of credit or debit cards.

Your Merchant Discount Rate remains unchanged as a result of the Interchange changes announced by Mastercard Canada.  However, you will receive the full pass-through benefit for MasterCard card not present transactions via a reduction in the Non-Qual Interchange in your merchant fees.

Message for iPlus – Interchange Plus – Priced Merchants

If you are an Interchange Plus (iPlus) priced merchant, the full changes of the Interchange rate changes announced by Mastercard Canada above will be passed through to you in the cost of the Interchange fee you pay. 

Message for Flat Rate Priced Merchants

If you are a Flat priced merchant, there is no impact to your fees as a result of the Interchange changes announced by Mastercard Canada above.

Visa Canada Fee Changes

On October 16, 2021, Visa will reduce its Interchange Program Rates* as indicated below.

*Interchange is the amount that Acquirers are required to pay to Card Issuers (banks such as RBC, TD, BMO, Scotiabank) for each transaction. Interchange rates are set and regulated by the Payment Card Networks (Visa and Mastercard, etc.) and not the Acquirers.

NOTE:  If you are unsure of your pricing plan, refer to the How to Determine your Pricing Plan section or call our HelpDesk at 1-888-263-1938 anytime.

Merchants on Merchant Discount Rate (MDR) Pricing Plan

The Merchant Discount Rate is the fee structure we charge you for accepting payments by way of credit or debit cards.

Your Merchant Discount Rate remains unchanged as a result of the Interchange changes announced by Visa Canada above.  Kindly note the Visa changes apply only to businesses eligible for one of the MCCs noted below:

For Everyday Needs—Restaurant

·         MCC 5812 – Eating places and restaurants

·         MCC 5814 – Fast food restaurants

For Everyday Needs—Other

·         MCC 4121 – Taxicabs and limousines

·         MCC 5192 – Books, periodicals, and newspapers

·         MCC 5331 – Variety stores

·         MCC 5697 – Tailors, seamstresses, mending, and alterations

·         MCC 5811 – Caterers

·         MCC 5912 – Drug stores and pharmacies

·         MCC 5942 – Book stores

·         MCC 5994 – News dealers and newsstands

·         MCC 7210 – Laundry, cleaning, and garment services

·         MCC 7211 – Laundries – Family and commercial

·         MCC 7216 – Dry cleaners

·         MCC 7230 – Beauty and barber shops

·         MCC 7251 – Shoe repair shops, shoe-shine parlors, and hat cleaning shops

·         MCC 7298 – Health and beauty spas

·         MCC 7542 – Car washes

Industry Program - Grocery and Food Retail

·         MCC 5411 – Grocery Shops and Supermarkets

·         MCC 5422 – Freezer and Locker Meat Provisioners

·         MCC 5441 – Candy, Nut, and Confectionery Stores

·         MCC 5451 – Dairy Product Stores

·         MCC 5462 – Bakeries

Message for iPlus – Interchange Plus – Priced Merchants

If you are an Interchange Plus (iPlus) priced merchant, the full changes of the Interchange rate changes announced by Visa Canada above will be passed through to you in the cost of the Interchange fee you pay. 

Message for Flat Rate Priced Merchants

If you are a Flat priced merchant, there is no impact to your fees as a result of the Interchange changes announced by Visa Canada above.

Interac® Switch Fee

As a result of the rate change announced by Interac Corp., the Interac Switch Fee is changing from $0.0096 per transaction to $0.0102 per transaction effective April 1, 2021. You are impacted only if you accept Interac Debit.  For more information, visit www.interac.ca/en/fees-explained.html.

Due to the COVID-19 public health crisis both Visa® and Mastercard® delayed changing their rates and fees until July 17, 2020 and August 1, 2020 respectively.  First Data has been working closely with both card brands to calculate retroactively how this will impact your account based your processing activity between April 18 - August 1, 2020. You will receive an email detailing any changes to your individual account if you are impacted. To view current rates, please visit our Interchange Rates page.

We previously informed you that the Visa® and Mastercard® Interchange Program rates and fees were changing on April 18, 2020 and May 1, 2020 respectively.  However, due to the COVID-19 public health crisis, both Visa and Mastercard are delaying these changes until July 17, 2020 and August 1, 2020 respectively.  We will provide further details as soon as we learn more from Visa and Mastercard on this matter. To view these rates, please visit our Interchange Rates page.

• Visa transactions processed between April 18, 2020 and July 17, 2020 are subject to the new rates, but the rate changes will be calculated retroactively and any adjustments depending on your First Data pricing structure will be applied to merchant accounts after the reconciliation takes place.
• Mastercard transaction processed between May 1, 2020 and July 31, 2020 are subject to the new rates, but the rate changes will be calculated retroactively and any adjustments depending on your First Data pricing structure will be applied to merchant accounts after the reconciliation takes place.

MasterCard and Visa Interchange Rate Program Changes

First Data Canada offers the following pricing plans:

»  Merchant Discount Rate (MDR)

»  iPlus (also referred to as Cost Plus)

»  Flat Rate

To determine your pricing plan, visit the How to Determine your Pricing Plan section below.

If you are on our Merchant Discount Rate (MDR) pricing plan, please go to the Message for Merchants on Merchant Discount Rate (MDR) Pricing Plan section below. If unsure, refer to your Card Acceptance Form OR to the Reference Table below OR call us at 1-888-263-1938.

If you are on the iPlus (Cost Plus) pricing plan, please go to the Message for Merchants on iPlus (Cost Plus) Pricing Plan section below. If unsure, refer to your Card Acceptance Form OR to the Reference Table below OR call us at 1-888-263-1938.

The Merchant Discount Rate is the fee structure we charge you for accepting payments by way of credit or debit cards.

Interchange is the amount that Acquirers are required to pay Card Issuers (i.e., the Bank named on the card) for each transaction. Interchange rates are set by the Payment Card Networks (i.e. Visa and MasterCard) and are determined by the card transaction mix accepted by you (i.e. Programs in the tables below) and how those cards are accepted (i.e. card present with Chip and PIN or card not present online, etc.).

Effective May 1, 2020, MasterCard is eliminating the following (current) Interchange Rate programs:

•  Merchant Volume Tier 1
•  Merchant Volume Tier 1
• Merchant Volume Tier 1
• CFIB
•  High Volume Supermarket
• Supermarket
• Independent Everyday Spend
• Petroleum
• Contactless
• Electronic
• Recurring
• Masterpass
• Emerging Segment
• Public Sector

And, MasterCard is introducing the following Interchange Rate programs:

• Card Present (EMV)
• Unsecure Card Present
•  Digital Commerce

To help you understand the changes made by MasterCard to the Interchange Rate Programs, we have noted below the current Interchange Rate Programs that will end on April 30, 2020, followed by the new Programs to take effect on May 1, 2020.

MasterCard Current Interchange Rate Programs – effective until April 30, 2020

Table – Effective until April 30, 2020

MasterCard New Interchange Rate Programs – effective starting May 1, 2020

2020 – Future Program	Core	World	World Elite	Muse
Card Present (EMV)	0.92%	1.22%	1.56%	1.65%
Unsecured Card Present	1.22%	1.52%	1.86%	1.95%
Digital Commerce	1.76%	2.00%	2.24%	2.39%
Contactless	0.87%	1.16%	1.48%	1.57%
3DS	1.50%	1.70%	1.90%	2.03%
Utilities	$0.10	$0.10$	$0.10	$0.10
Charities	0.92%	1.22%	1.56%	1.65%
Standard	2.06%	2.30%	2.54%	2.69%
Card Present Refund	(0.55%)	(0.73%)	(0.94%)	(0.99%)
Card Not Present Refund	(1.06%)	(1.20%)	(1.34%)	1.43%

1. Effective May 1, 2020, the Merchant Volume Tier 1, Merchant Volume Tier 2, Merchant Volume Tier 3, CFIB, High Volume Supermarket, Supermarket, Independent Everyday Spend, Petroleum, and Electronic Interchange Rate Programs will be replaced by the Card Present (EMV) Interchange Rate Program for all transactions processed using an EMV enabled terminal, also referred to as a CHIP enabled terminal. See above Tables for details.
2. Effective May 1, 2020, the Merchant Volume Tier 1, Merchant Volume Tier 2, Merchant Volume Tier 3, CFIB, High Volume Supermarket, Supermarket, Independent Everyday Spend, Petroleum, and Electronic Interchange Rate Programs will be replaced by the Unsecured Card Present Interchange Rate Program for all transactions processed using a non EMV enabled terminal, also referred to as a Magnetic Stripe terminal. See above Tables for details.
3. Effective May 1, 2020, the Recurring Payments Interchange Rate Program will be replaced by the Standard Interchange Rate Program. See above Tables for details.
4. Effective May 1, 2020, eCommerce transactions not authenticated using 3DS SecureCode will be eligible for the Digital Commerce Interchange Rate Program. See above Tables for details.

The following Interchange Rate Programs remain intact:

• SecureCode / 3DS
• Contactless
• Utilities
• Charities
• Standard

See above Tables for details.

Changes to the Visa Interchange Rate Programs

Changes effective April 18, 2020

Interchange Rate Programs are set by the Payment Card Networks. Effective April 18, 2020, Visa Canada will reduce some Interchange Rates which we have highlighted in yellow, and increase some Interchange Rates which we have highlighted in red, and added new programs which we have bolded.

Performance Programs are restricted to merchants identified by Visa Canada. If you are eligible, Visa will advise us accordingly and we will notify you in turn.

Industry Program – Utilities. If you are a merchant with MCC 4900 - Utilities, and impose a Service Fee that is CAD 2 or less when accepting a Visa Credit card, and CAD 1 or less when accepting a Visa Debit card, you may be eligible for this Interchange Rate program. Please contact us for further details.

Emerging Segments –Preferred. If you are a merchant with MCC 8211—Elementary and Secondary Schools; MCC 8220—Colleges, Universities, Professional Schools, and Junior Colleges; MCC 8351—Child Care Services; MCC 9311—Tax Payments; MCC 8050; and MCC 6513—Real Estate Agents and Managers—Rentals and impose a Service Fee that is 1.60% or less when accepting a Visa Credit card, you may be eligible for this Interchange program.

Furthermore, if your MCC is 6513, 9311, and 8351, in addition to the above requirements, when accepting Visa Debit, the Service Fee must be CAD $10 or less. If your MCC is 8211 or 8050, and your Service Fee for Visa Debit is CAD 20 or less, you may be eligible for this Interchange program.

Interac Switch Fee

Changes Effective on April 1, 2020

As a result of the fee change announced by Interac Corp., the Interac Switch Fee which is passed through to you is changing from $0.009 per transaction to $0.0096 per transaction effective April 1, 2020. You are impacted only if you accept Interac Debit cards.

Visa Acquirer International Service Fees also referred to as the Cross Border Assessment Fee

Changes Effective on April 18, 2020

Visa charges an assessment fee called the International Service Fee (IASF) on all transactions when a foreign issued card is used which is passed through to you. Effective April 18, 2020 Visa is increasing the International Service Fee (IASF) by 20 bps which we pass through to you as is. You are impacted only if you accept non-Canadian Visa cards.

Introduction of new Visa Non-compliance Programs

Visa Non-Chip Terminal Use Compliance Program

Changes Effective on October 1, 2020

To promote the use of EMV terminals, Visa will assess a non-compliance fine of USD $0.15 per transaction when a non-EMV enabled terminal is used effective October 1, 2021. To avoid this non-compliance fine, kindly ensure your terminal is EMV enabled.

Visa Key Entered Transaction Compliance Program

Changes Effective on October 1, 2020

All improperly flagged Card Not Present transactions will incur a non-compliance assessment of USD $0.15 per transaction effective Oct 1, 2021. To avoid this non-compliance fine, kindly ensure you are using a First Data certified payment solution properly configured to process manually entered payment card transactions. 

Visa Excess Transaction Reattempt Compliance Program

Changes Effective on August 1, 2020

Merchants must not attempt to authorize transactions that were previously declined. Failure to comply will result in a non-compliance assessment effective August 1, 2020 according to the following schedule:

• Domestic transaction = USD $0.10 per transaction
• Cross Border transaction = USD $0.15 per transaction
  
  

Visa Data Consistency Compliance Program

Changes Effective on August 1, 2020

Merchants manipulating data in an authorization reattempt will incur a non-compliance assessment effective August 1, 2020 according to the following schedule:

• Domestic transaction = USD $0.10 per transaction
• Cross Border transaction = USD $0.15 per transaction
  
  

MasterCard 3DS Authentication Fee

Changes Effective on May 1, 2020

Effective May 1, 2020, ecommerce transactions authenticated using 3DS will incur additional fees as follows:

• 3DS 1.0 transactions will increase from $0.03 to $0.05 per transaction
• 3DS 2.0 transactions will be billed 1 basis point with a maximum of USD 0.10 per transaction.

This fee only applies if you have implemented 3DS authentication capabilities for your ecommerce transactions.

Mastercard introduces the Nominal Amount Authorization Transaction Processing Excellence Program

Nominal Amount Authorization transactions are transactions for authorization with one full unit of currency (also referred to as $1.00 status checks) and subsequently reversed in an effort to validate the card status: functionality typically used by ecommerce merchants and merchants doing recurring payments. Mastercard prohibits this type of transaction to check card status and merchants are to use the Account Status Inquiry transaction type. This is a $0.00 transaction request. To discourage the continued practice of Nominal Amount Authorization transactions, Mastercard will introduce a non-compliance fine effective October 1, 2019. To avoid non-compliance fines, ensure you are using the Account Status Inquiry (ASI) transaction type for account status checks. Do not attempt Nominal Amount Authorization transactions.

Mastercard introduces the Excessive Authorization Attempts Transaction Processing Excellence Program

Account testing across the Mastercard network is disruptive to the cardholder experience, costly to all payment participants, creates reputation challenges within the industry, and, in some cases, results in significant fraud losses. As a result, Mastercard will introduce a non-compliance fine effective July 1, 2019 for all authorization attempts made on the same card within 24 hours period after receiving 20 decline responses from the issuer. To avoid non-compliance fines, do not attempt multiple authorizations on the same card following a decline response from the issuer. As a best practice, if a transaction is declined by the issuer, have the cardholder use another payment card to process the transaction. Please refer to our Payment Acceptance Guide available on https://www.firstdata.com/en_ca/customer-center/getting-started.html.

Mastercard introduces the Interchange Program for Inter-Regional Refund transactions

Mastercard Canada is introducing a new Interchange Rate program. Effective October 18, 2019, if you process a Mastercard refund transaction that involves a foreign issued card, i.e., a card that was not issued in Canada, the following Mastercard Interchange Rates will apply as follows:

• 1.00% for transactions with consumer cards
• 1.80% for transactions with commercial card
  
  

Mastercard introduces a new Preauthorization Fee

A pre-authorization is an optional card service that is supported for Mastercard cards on the Mastercard Network and is predominately used by merchants in the travel and entertainment (T&E) industry, and e-commerce environments. Effective November 1, 2019, Mastercard Canada is introducing a fee for preauthorized transactions that we will pass through to you as is. As a result, a fee of 0.05% will be charged to the amount authorized as a pre-authorized transaction with a minimum fee of $0.01 per transaction.

Mastercard changes Acquirer Assessment Fee

From time to time, the Acquirer Assessment Fee is subject to change as dictated by the Payment Card Networks whose cards you accept. The Acquirer Assessment Fee is a fee that we pass through to you as is billed by the Payment Card Networks. Effective November 1, 2019, Mastercard will apply the Acquirer Assessment Fee to refund transactions. This change only impacts you if your pricing is on a cost pass-through (iPlus) basis.

Visa Canada Changes to Emerging Segment Interchange Program

Effective Oct 18, 2019, merchants with MCC 8661 – Religious Organizations will be eligible for the Visa Canada Emerging Segment Interchange Program. Merchants classified with this MCC are religious organizations that provide worship services, religious training or study, or religious activities such as Churches, Chapels, Mosques, Synagogues, and Temples. Your merchant discount rate (if applicable) will remain unchanged and will continue to apply on all Consumer Electronic transactions. We’re happy to inform you that for all other transactions types (i.e., Infinite and Infinite Privilege) you will receive the full benefit of the rate reduction in Interchange rates noted above. If your pricing is on a cost pass-through (iPlus) basis, then you will receive the full Interchange Rate reduction for all card types.

Mastercard Cross Border Assessment Changes

Changes Effective May 1, 2019

A Cross Border transaction is a transaction that involves a foreign issued card, i.e., a US-issued Mastercard. On the July 31, 2018 notice, we had advised you that Mastercard charges the Cross Border Assessment on all Cross Border transactions that we pass through to you as is. Currently, only purchase transactions are subject to the Cross Border Assessment. Effective May 1, 2019, refund transactions will also be subject to the Cross Border Assessment.

Interchange Rate Changes

Changes Effective May 1, 2019

From time to time, Interchange rates are subject to change as dictated by the Payment Card Networks whose cards you accept. Effective May 1, 2019, Mastercard Canada is updating their Interchange rates. However, our fees to you remain unchanged. For more information about current and future Interchange Rates, visit our Interchange Rates page.

Interchange Rate Changes

Assessment Fees are paid to the Payment Card Networks (i.e., Visa and Mastercard). As of April 1, 2019, Visa Canada’s Acquirer Assessment Fee will increase from 0.0904% to 0.1017% which we pass through to you as is. Kindly refer to Pass Through Fees for additional details.

Interchange is the amount that Acquirers are required to pay Card Issuers (i.e., the Banks such as RBC, TD, BMO, Scotiabank) for each transaction. Interchange rates are set, and regulated by the Payment Card Networks (i.e. Visa and Mastercard). As of January 1, 2019, Mastercard Canada will reduce its Interchange Rates as noted below (highlighted in yellow).

Changes taking effect on Jan 1, 2019:

** N/C = No change **

Your merchant discount rate (if applicable) remains unchanged, and will continue to apply on all Core, Electronic transactions. We’re happy to inform you that for all other transactions types (i.e., World and World Elite) you will receive the full benefit of the rate reduction in Interchange rates noted above. If your pricing is on a cost pass-through basis, then you will receive the full Interchange Rate reduction for all card types.

Mastercard^® and Visa^® Fee Changes

Changes Effective on November 1, 2018 and April 1, 2019

Mastercard charges an assessment fee called the Cross Border Assessment Fee, and Visa charges an assessment fee called the International Service Fee (IASF), on all transactions acquired in Canada that involves a foreign issued card. For example, if a cardholder uses their US-issued Mastercard or Visa card to make a purchase in Canada, Mastercard and Visa will assess their respective fees for cross border transactions. Effective November 1, 2018 Mastercard is increasing their Cross Border Assessment Fee, and effective April 1, 2019 Visa is increasing their International Service Fee (IASF) which we pass through to you as is. Kindly refer to Pass Through Fees for additional details.

Interac^® Switch Fee

Changes Effective on August 7, 2018

As a result of the rate change announced by Interac Corp., the Interac Switch Fee is changing from $0.0065 per transaction to $0.009 per transaction effective August 7, 2018. You are impacted only if you accept Interac Debit.

For more information, visit www.interac.ca/en/fees-explained.html