Visa Canada Interchange Rates

Just type into your Google search bar “visa canada interchange rates”.  After 5mins of poking around, you’ll eventually come to their public, online PDF of their basic interchange rates.
The most simple way to understand what interchange is in regard to payment processing, without getting into the complexities of how the money flows or who issues the credit cards, etc., is to look at these rates as if they are wholesale pricing or buyrates From Visa to the Six Credit Card Processors in Canada.

You can be sure that Mastercard is similiar in their basic interchange rates, but on their site, you have to request that info, so it’s not just posted.  Since Visa is used 2-4X more at a business than Mastercard, we’ll just talk about Visa in this post.

Now, look at bottom of page 3 at “Standard”: 1.65% (Qualified Transaction for swiped, face to face, traditional retail storefront businesses)/ 1.85% (Non-Qualifed which covers rewards and corporate business cards)/ 2% (Mid-Qualified which covers keyed-in transactions, non card present, over the phone &  e-commerce).  Mid and Non Qualified Transaction categories sometimes are backwards where Mid covers keyed-in and Non covers rewards and corporate cards.  Sometimes it doesn’t matter since both get the same rate adjustment.

Why am I showing you how to find publicly posted information?  Every day I get Business Owners say things like: “ABC Company is offering me 1.61% and that covers everything- mids & nons”.  Impossible.  Just look at your business for a logical comparison.  Would you buy at wholesale an item that is $1.65 and then sell it for $1.61?  of course not?  $1.75?  Then why would the credit card processors?  What about their breakeven point?  What about earning a profit for providing these Merchant Services?

The old saying of “If it looks too good to be true, then it probably is” is right.  If it looks too cheap, then it’ll end up costing a lot more in the end in time, money and frustration.  Look for competitive pricing and good service.   Are they answering your questions?  Are they pressuring you?  And most importantly, do they have dozens and dozens of  Testimonials like us from Happy Customers?


One Response so far

Good blog with some fascinating information. I’ll be back.

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