The Bankwatch

Tracking the consumer evolution of financial services

Visa and MasterCard reduce and cap interchange fees in Canada

And pigs can indeed fly.

Visa and MasterCard have finally caved in to pressure from Canadian competition authorities and agreed to set a 1.5% ceiling on interchange rates in the country for the next five years.

But I have to wonder with the pressure on large institutions including telcos to reduce locked in periods, fees, and exits costs, that similar pressure was expected on interchange, and maybe this was a way to get head of the regulators.

Written by Colin Henderson

November 4, 2014 at 22:57

Posted in Uncategorized

One Response

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  1. The real problem is the complicated pricing, contracts and statements. Each fee can and often does have a different name on your contract and your statement not to mention between processors. Even the classes of cards have different names between the card brands, statements and contracts. One company uses a grid system for “Non Qualified” card fees (those that are not consumer cards with no rewards done electronically). The grid has different rates for each card, the names of the cards on the grid don’t match the statement and the rates which are posted on the grid do not appear on the statement only the sales and $ amount of the fee. For the average business this is very difficult to audit.

    Rick Smith

    November 6, 2014 at 13:27

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