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Double Branded Debit Cards
September 16, 2020
7:52 am
KamWest
Toronto
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Can anyone confirm if these new cards run on the interac system or on Visa or Mastercard. Until recently it was mandated that all debit run on interac and that cost merchants between 5 and 15 cents per transaction.

In the USA debit runs on Visa and Mastercard and the merchant pays a percentage just like on credit cards.

If Visa and Mastercard bypass Interac in Canada it will turn to a percentage charge and Canada will lose its only not for profit payment system.

Little do people realize that Interac is not for profit and as a merchant myself I specifically accept Interac Debit, e-transfer & cash.

All the banks seem to be migrating from straight debit cards to double branded Visa and Mastercard Debit cards and I fear that puts our not for profit interac system at risk.

In the end these percentages will get passed along to the clients and I know in my business we run on razor thin margins. It was a conscious decision to stop accepting credit cards or increase prices.

We were promised breaks during covid times but instead we were hand keypunching credit cards over the phone and the fees started getting higher and higher.

Interac and e-transfer is the one way we can still keep the money out of the hands of these billion dollar corporation and keep it in the merchant or consumers hands.

Everybody needs to make sure they still have and keep an Interac Branded card to support our not for profit payment system. I fear with these new introductions we could be seeing a massive shift away from Interac.

September 16, 2020
8:22 am
topgun
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KamWest said
Can anyone confirm if these new cards run on the interac system or on Visa or Mastercard. Until recently it was mandated that all debit run on interac and that cost merchants between 5 and 15 cents per transaction.

In the USA debit runs on Visa and Mastercard and the merchant pays a percentage just like on credit cards.

If Visa and Mastercard bypass Interac in Canada it will turn to a percentage charge and Canada will lose its only not for profit payment system.

Little do people realize that Interac is not for profit and as a merchant myself I specifically accept Interac Debit, e-transfer & cash.

All the banks seem to be migrating from straight debit cards to double branded Visa and Mastercard Debit cards and I fear that puts our not for profit interac system at risk.

In the end these percentages will get passed along to the clients and I know in my business we run on razor thin margins. It was a conscious decision to stop accepting credit cards or increase prices.

We were promised breaks during covid times but instead we were hand keypunching credit cards over the phone and the fees started getting higher and higher.

Interac and e-transfer is the one way we can still keep the money out of the hands of these billion dollar corporation and keep it in the merchant or consumers hands.

Everybody needs to make sure they still have and keep an Interac Branded card to support our not for profit payment system. I fear with these new introductions we could be seeing a massive shift away from Interac.  

Although they are called Visa/Mastercard Debit they are processed through Interac.

Have a Great Day

September 16, 2020
8:34 am
KamWest
Toronto
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@topgun

You are correct with this but here is the big but....

Visa and Mastercard is saying you now have all the same protection with THEIR debit cards as with THEIR credit cards.

INTERAC offers fraud protection as well but the credit card companies are saying theirs is different and if that is the case then they have to cover those costs.

I know initially they mandated that all debit must go through INTERAC in Canada but I have a sneaking suspicion this is changing especially if you look at the new PC Card which they are saying works like a debit card but its really a spending account.

The lines between these cards and a true INTERAC card are being blurred and I can't help but feel that true INTERAC is going to go the way of the dodo bird.

Anyone know how long they were mandated to use INTERAC?
I know they fought it tooth and nail at the beginning.

September 16, 2020
11:14 am
Norman1
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According to Visa Purchase Protection: Layers of Security, Visa Canada does not provide any protection for any transactions that are not actually processed by Visa:

1 Visa's Zero Liability Policy covers Canada-issued cards and does not apply to anonymous Visa Prepaid*, Visa Purchasing, Visa Corporate, Visa Commercial, or any transactions not processed by Visa. Visa Cardholders must notify their financial institution immediately of any unauthorized use. …

So, if the debit transaction with a Canadian Visa Debit card was one of those that are processed by Interac, then it is subject to Interac's protections and not Visa's.

September 16, 2020
11:20 am
KamWest
Toronto
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https://i.postimg.cc/w3KxKhvg/Picture0015.png

https://www.visa.ca/en_CA/pay-with-visa/cards/debit-cards.html

It looks like they are starting to add their own purchase protection

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