Payment Card Network Fee Updates

Payment Card Network Operators (PCNOs) including American Express, Discover, Interac, JCB, Mastercard, Union Pay and Visa will regularly review and update their fee structures for specific merchant categories or payment types (card present, not present etc.). Moneris will regularly communicate these updates on Merchant statements and post full details on this page.

Updates

  • Effective November 4, 2019, Mastercard will be introducing a new fee for each approved pre-authorization transaction. The Mastercard Pre-authorization Fee will be calculated as the maximum of 0.05% of the authorized amount or $0.01 USD per pre-authorization transaction.

  • Effective November 1, 2019, the Mastercard Assessment Fee of 0.08% will no longer only apply on purchases, but will also apply on all refund/return transactions (whether processed in Canadian or non-Canadian currencies).

  • Mastercard is introducing two new fees as part of its Transaction Processing Excellence (TPE) Program to drive positive processing behaviour:

    • Excessive Authorization Attempts Fee
    • Nominal Amount Authorization Fee 

    Moneris will pass through these Mastercard fees to merchants if their processing activities trigger the fees, as described below.

    Excessive Authorization Attempts Fee
    Mastercard is introducing a fee for merchants who submit excessive authorization attempts. Mastercard defines an excessive authorization attempt as each authorization (i) after 20 previously declined authorizations, (ii) made on the same card, (iii) on the same merchant account, and (iv) within a 24-hour period.

    Effective October 14, 2019*, for each excessive authorization attempt as defined above, a fee of US$0.10 will be applied. If you incur this fee, it will be passed through to your account and appear as “Excessive Authorization Attempts Fee” on your statement. 

    Below is a common example of an excessive authorization attempt:

    • A merchant’s ecommerce site is attacked by a fraudster, who uses a bot to make purchase attempts repeatedly as a way to test if a credit card number is valid.

    Taking the following actions may reduce the risk of excessive authorization attempts and help you avoid this fee: 

    • Add an anti-spam program: web applications like CAPTCHA that ask the user to answer a response test can be used to determine whether the user making the purchase is a human or a robot
    • Ask for CVC2:
      • this confirms that the customer has the physical card or is in possession of the card when they call in
      • allows the issuer to match the 3 digit code provided by the customer to what is on record 
    • Activate Mastercard Identity Check (formerly SecureCode): this tool helps authenticate the cardholder and the credit card during the online shopping process
    • Use Address Verification Service (AVS): matches the address the customer provided to the address on record with the credit card company

    There is no single solution to fraud. However, combining the above recommendations can help significantly reduce fraudulent transactions and your risk of triggering the Excessive Authorization Attempts Fee. For more information about how you can minimize the risk of fraud, visit Moneris.com/fraud.

    Nominal Amount Authorization Fee
    Mastercard is introducing a fee to deter merchants from validating a card’s status by authorizing a nominal amount and subsequently reversing the authorization. Mastercard defines nominal amount as equal to or less than CAD$1.00 (or an equivalent single unit of currency, if the transaction currency is not CAD).

    Effective October 14, 2019, for each nominal amount authorization (as defined above) received for a card-not-present (CNP) transaction that the merchant subsequently reverses, a fee of US$0.045 will be applied. If you incur this fee, it will be passed through to your account and appear as “Nominal Amount Authorization Fee” on your statement.

    Below is a common example of a reversal of an approved nominal amount authorization:

    • CNP merchants often receive cardholder information first (via ecommerce, telephone or mail) before they can actually charge the card. For example, a customer opts-in to a monthly magazine subscription by a mailed form, but the merchant can only charge the customer at the end of the month. As a way of verifying cardholder information, the merchant authorizes a nominal amount transaction, then subsequently reverses the transaction. 

    Taking the following actions can help you minimize the risk of triggering this fee:

    • Pre-authorize the transaction for the full amount and complete or reverse the transaction within 30 days. 
    • Follow the correct cardholder verification process and use card verification for any account status checks. For more information on the cardholder verification process, visit developer.moneris.com or contact us at 1-866-319-7450.

    *Revised from July 15, 2019

     
  • Mastercard is making the Humanitarian Program available in Canada to address the delivery of digital aid via prepaid products. Mastercard is updating the interchange and implementing a single assessment fee for the below product codes in Canada effective *October 18, 2019.

    Product

    Standard Interchange Rate Effective *October18, 2019

    Single Assessment Effective *October 18, 2019

    Debit Mastercard® Humanitarian Prepaid

    1.65%

    0.25%

    Mastercard® Humanitarian Prepaid

    1.65%

    0.25%

     

    *Revised from April 12, 2019


  • Mastercard is introducing the Mastercard Enterprise Solution Freight Program Interchange Program effective *October 18, 2019. Mastercard Enterprise Solution Freight Program interchange rates and assessment fees apply to freight transactions that are acquired anywhere in the world and that are initiated with virtual Mastercard account numbers issued anywhere in the world.  

    Interchange Program

    Interchange Rate Effective *October 18, 2019

    Assessment Fee Effective *October 18, 2019

    Mastercard Enterprise Solution Freight Program

    1.80%

    0.50%

     

    Mastercard Enterprise Solution Freight Program is limited to the following card acceptor business codes (MCCs) within freight industry:

    MCC

    MCC Description

    3000-3350

    Airlines, Air Carriers

    4011

    Railroads, Freight

    4214

    Motor Freight Carriers, Trucking— Long Distance, Moving and Storage Companies, Local Delivery

    4215

    Courier Services —Air and Ground, Freight Forwarders

    4511

    Air Carriers, Airlines—not elsewhere classified

    4789

    Transportation Services—not elsewhere classified

    4112

    Passenger Railways

    4111

    Transportation—Suburban and Local Commuter Passenger, including Ferries

    7299

    Other Services—not elsewhere classified

    9311

    Tax Payments

    9402

    Postal Services—Government Only

    9399

    Government Services—not elsewhere classified

     

    *Revised from April 12, 2019

     

     


  • Effective October 18 2019, Visa will expand the domestic Emerging Segments Fee Program to include MCC 8661—Religious Organizations resulting in lower interchange rates for qualifying transactions.  

    Emerging Fee Program

    Interchange Rates

    CONSUMER

    0.98%

    INFINITE

    1.17%

    CORPORATE

    1.80%

    INFINITE PRIVILEGE

    1.95%

  • Effective October 18, 2019, the Mastercard interchange rate for foreign refunds/return transactions will no longer equal the interchange of the original foreign purchase transaction. Instead, the Mastercard interchange rate for foreign refunds/return transactions will correspond to the foreign card type: 1.00% for consumer cards, and 1.80% for commercial cards.

  • Effective October 18, 2019, Mastercard will no longer be supporting the following fee programs: i) Purchasing Large Ticket with an interchange rate of 0.90% + USD 30.00; and ii) Commercial Purchasing Data Rate II with an interchange rate of 1.70%. Instead, transactions previously categorized under those fee programs will be redirected to other fee programs based on the characteristics of the transactions. This will impact your cost of processing should you process these types of transactions.

  • Effective October 1, 2019, Interac announced that merchants categorized in Charitable & Social Services Organizations (MCC 8398) will qualify for Tier 1 – Low-ticket merchants pricing, with a fee of $0.02 which will result in lower interchange for qualifying transactions.

    Interac Flash Tiers

    Interchange Fee

    Qualification Criteria

    Tier 1

    Low-ticket merchants

    $0.020

    Qualifying segments are:

    • Quick Service Restaurants (MCC 5814)
    • Convenience Stores (MCC 5331)
    • Movie Theatres (MCC 7832)
    • Vending Machines (MCC 5499)
    • Bakeries (MCC 5462)
    • Dairy Product Stores (MCC 5451)
    • Charitable & Social Services Organizations (MCC 8398)*

    Tier 2

    High volume merchants

    $0.025

    Merchants that meet a minimum annual transaction volume threshold of 20 million Interac Flash transactions, based on transaction volume in the previous calendar year.

    Tier 3

    All other merchants

    $0.035

    Standard interchange rate that applies to all other merchants.


    *Effective October 1, 2019


  • UnionPay has announced Interchange and Assessment Fee updates specific to Insurance MCCs (5960, 6300) for cross-border ecommerce transactions effective September 6, 2019.

    Fee Description For
    Cross-Border Ecommerce Transactions 

    Current UnionPay Rates For
    Insurance MCCs (5960, 6300)

    UnionPay Rates For 
    Insurance MCCs (5960, 6300) Effective September 6, 2019

    Interchange Fee

    1.15%

    1.20%

    Assessment Fee

    0.00%

    0.20%


  • Visa is increasing its Foreign Assessment Fee for single-currency card-not-present (CNP) transactions from 0.80% to 0.85% effective September 1, 2019. A transaction is considered single-currency when the transaction is conducted in the currency of the Visa Card used.

    Transaction Jurisdiction

    Current Visa
    Foreign Assessment Fee

    Visa Foreign
    Assessment Fee Effective September 1, 2019*

    International –

    Single-currency CNP

    0.80%

    0.85%

     

    *Revised from April 1, 2019


  • Mastercard categorizes foreign transactions as those that are either submitted in the local currency of the merchant or those that are not submitted in the local currency of the merchant. 

    • In Canada, a transaction is considered ‘submitted in the local currency of the merchant’ when the transaction is conducted in Canadian Dollars. 
    • In Canada, a transaction is considered ‘not submitted in the local currency of the merchant’ when the transaction is conducted in a currency that is different from the Canadian Dollar. 

    Below are  common examples of Mastercard foreign transactions that are categorized as ‘submitted in the local currency of the merchant’ and those that are categorized as ‘not submitted in the local currency of the merchant’:

    If you have an account that processes payments in Canadian Dollars:

    •  A foreign transaction that is submitted in Canadian Dollars (local currency of the merchant) occurs when your customer presents a Mastercard Card issued in an international currency (e.g. Euros) and pays for the goods or services in Canadian Dollars.
    • A foreign transaction that is not submitted in Canadian Dollars (not submitted in the local currency of the merchant) occurs when your customer presents a Mastercard Card issued in an international currency (e.g. Euros) and opts in for Dynamic Currency Conversion (DCC) to pay for the goods or services in Euros.

    If you have an account that processes payments in US Dollars:

    • Any foreign transaction would be categorized as not submitted in Canadian Dollars, since your goods and/or services are retailed in US Dollars. As a result, your customers pay for the goods or services in US Dollars (i.e. not in Canadian Dollars).

    The following table outlines the current rates associated with Mastercard foreign transactions.

    Type Of Foreign Transaction

    Mastercard Foreign Assessment Fee

    Submitted in Canadian Dollars

    0.60%

    Not Submitted in Canadian Dollars

    1.00%

     

    Effective June 1, 2019, Moneris will be making adjustments to merchant accounts to ensure the Mastercard foreign assessment fees are properly applied.

  • Visa categorizes foreign transactions as either multi-currency or single-currency transactions:

    • A transaction is considered multi-currency when the transaction is conducted in a currency that is different from the currency of the Visa Card used. 
    • A transaction is considered single-currency when the transaction is conducted in same the currency of the Visa Card used. 

    Below are common examples of Visa multi-currency and single-currency foreign transactions:

    If you have an account that processes payments in Canadian Dollars:

    • A multi-currency transaction occurs when your customer presents a Visa Card issued in an international currency (e.g. Euros) and pays for the goods or services in Canadian Dollars. 
    • A single-currency transaction occurs when your customer presents a Visa Card issued in an international currency (e.g. Euros) and opts in for Dynamic Currency Conversion (DCC) to pay for the goods or services in Euros.

    If you have an account that processes payments in US Dollars:

    • A multi-currency transaction occurs when you accept a foreign Visa Card that is not denominated in US Dollars.
    • A single-currency transaction occurs when you accept a foreign Visa Card that is denominated in US Dollars.

    The following table outlines the current rates associated with Visa multi-currency and single-currency foreign transactions. 

    Type Of Foreign Transaction

    Visa Foreign Assessment Fee

    International – Multi-currency

    Card-Present and Card-Not-Present

    0.40%

    International – Single-currency

    Card-Present

    0.80%

    International – Single-currency

    Card-Not-Present

    0.85%

    (Effective April 1, 2019)

     

    Effective June 1, 2019, Moneris will be making adjustments to merchant accounts to ensure the Visa foreign assessment fees are properly applied.

  • UnionPay mail order/telephone order (MOTO) transactions were previously categorized as e-commerce transactions with an interchange rate of 1.10%. Effective May 1, 2019, UnionPay MOTO transactions will be subject to the new interchange of 1.50%.

  • Effective May 1, 2019, Mastercard is updating the interchange rates for standard transactions in Canada. Any Mastercard transactions submitted for clearing and settlement on April 30, 2019 and onwards are subject to the new interchange rates.  

    Standard Transactions 

    Current Interchange Rates 

    Interchange Rates Effective May 1, 2019

    CORE

    1.58%

    1.65%

    WORLD

    2.19%

    2.29%

    WORLD ELITE

    2.49%

    2.79%

  • Effective May 6, 2019*, Mastercard will apply its foreign assessment fee to foreign refund/return transactions.

    Foreign Transaction Type

    Foreign Assessment Fee

    Applicable to Refunds

    Effective May 6, 2019

    Not submitted in CAD

    1.00%

    Submitted in CAD

    0.60%

     

    *Original effective date posted was May 1, 2019, however Mastercard later revised the new effective date to be May 6, 2019.

  • Interac has announced that merchants belonging to the following business segments (Merchant Categories) will qualify for Tier 1 – Low ticket Merchants pricing for Interac Flash interchange effective April 2, 2019:

    Merchant Category Code

    Merchant Category Description

    Tier-1 Interac Flash Pricing Effective April 2, 2019

    5451

    Dairy Product Stores

    $0.02

    5462

    Bakeries

    $0.02


  • Mastercard is making the Humanitarian Program available in Canada to address the delivery of digital aid via prepaid products. Mastercard is updating the interchange and implementing a single assessment fee for the below product codes in Canada effective April 12, 2019.

    Product

    Standard Interchange Rate effective April 12, 2019

    Single Assessment Effective April 12, 2019

    Debit Mastercard® Humanitarian Prepaid

    1.65%

    0.25%

    Mastercard® Humanitarian Prepaid

    1.65%

    0.25%


  • Visa is increasing its Foreign Assessment Fee for single-currency card-not-present (CNP) transactions from 0.80% to 0.85%. A transaction is considered single-currency when the transaction is conducted in the currency of the Visa Card used. 

    Transaction Jurisdiction

    Current Visa

    Foreign Assessment Fee

    Visa Foreign

    Assessment Fee Effective April 1, 2019

    International –

    Single-currency CNP

    0.80%

    0.85%


  • Visa is increasing its Assessment Fee in Canada to 9 basis points (bps) for gross merchant sales volume processed on Visa cards acquired in Canada effective April 1, 2019.

    Transactions

    Current Visa

    Assessment Fee

    Visa Assessment Fee Effective April 1, 2019

    Gross merchant sales volume processed on Visa cards acquired in Canada

    0.08%

    0.09%


  • Mastercard is updating the interchange rates across Canada, effective January 1, 2019.

    Mastercard Interchange Changes Coming January 1, 2019

    TYPE

    CORE

    Current

    Future

    Delta

    Standard

    1.58%

    1.58%

    -

    Electronic

    1.44%

    1.30%

    -0.14%

    Performance Program - Tier 1 ($3B)

    1.26%

    1.26%

    -

    Performance Program - Tier 2 ($1B)

    1.36%

    1.30%

    -0.06%

    Performance Program - Tier 3 ($400M)

    1.38%

    1.30%

    -0.08%

    Masterpass / SecureCode

    1.44%

    1.30%

    -0.14%

    Recurring

    1.36%

    1.30%

    -0.06%

    Everyday Spend

    1.38%

    1.30%

    -0.08%

    TYPE

    WORLD

    Current

    Future

    Delta

    Standard

    2.29%

    2.19%

    -0.10%

    Electronic

    1.71%

    1.42%

    -0.29%

    Performance Program - Tier 1 ($3B)

    1.38%

    1.38%

    -

    Performance Program - Tier 2 ($1B)

    1.48%

    1.42%

    -0.06%

    Performance Program - Tier 3 ($400M)

    1.51%

    1.42%

    -0.09%

    Masterpass / SecureCode

    1.71%

    1.42%

    -0.29%

    Recurring

    1.48%

    1.42%

    -0.06%

    Everyday Spend

    1.51%

    1.42%

    -0.09%

    TYPE

    WORLD ELITE

    Current

    Future

    Delta

    Standard

    2.79%

    2.49%

    -0.30%

    Electronic

    2.06%

    1.86%

    -0.20%

    Performance Program - Tier 1 ($3B)

    1.90%

    1.82%

    -0.08%

    Performance Program - Tier 2 ($1B)

    1.90%

    1.86%

    -0.04%

    Performance Program - Tier 3 ($400M)

    1.90%

    1.86%

    -0.04%

    Masterpass / SecureCode

    2.06%

    1.86%

    -0.20%

    Recurring

    1.90%

    1.86%

    -0.04%

    Everyday Spend

    1.90%

    1.86%

    -0.04%


  • Effective November 4, 2018, Mastercard is revising its Acquirer Cross-Border fee. The new fee will apply to all Mastercard foreign transactions submitted for clearing and settlement on November 3rd and onwards. 

    Mastercard will revise the Acquirer Cross-Border fees as follows: 

    Mastercard Foreign Transactions

    Current Acquirer Cross-Border Fee

    Acquirer Cross-Border Fee as of Nov. 4, 2018

    Submitted in the local currency of the merchant (i.e. Settlement is in CAD)

    0.40%

    0.60%

    Not submitted in the local currency of the merchant and collection only (i.e. Settlement is in USD)

    0.80%

    1.00%

     

    For information on how these changes will impact your costs of processing foreign Mastercard transactions, please review your July statement message or the letter you received from Moneris. If you did not receive or cannot find the statement message or letter, please contact your Moneris Account Manager or call our 24/7 Customer Service number at 1-866-319-7450.

  • Interac has recently announced fee changes.  Please see below for more details about this announcement and how it will be applied to merchant accounts. 

    Notification Date

    Effective Date

    Fee Details

    May 1, 2018

    August 7, 2018

    • Effective August 7, 2018, Interac assessment/card brand fee will be updated to $0.008 per transaction
    • This fee will be listed in the Transaction Fees section on merchant statements

     

    Interac transactions impacted by this update

    • All card brand/assessment fees for Interac Debit, Interac Flash and Interac Mobile Flash (contactless) are being updated to $0.008 per transaction
    • Interac In-App and Interac Online transactions are excluded from this update

  • Mastercard will be adjusting its assessment fee from 0.077% to 0.080%. 

    For information on how these changes will impact your costs of processing credit and debit card payments with Moneris, please review your July statement message or the letter you received from Moneris. If you did not receive or cannot find the statement message or letter, please contact your Moneris Account Manager or call our 24/7 Customer Service number at 1-866-319-7450.

     
  • Mastercard will be adjusting some of the interchange rates for domestic transactions in the Canada region effective November 1, 2017. 

     

    Interchange Program Type

    Current

    Effective Nov 2017

    Core

    World

    World Elite

    Core

    World

    World Elite

    Volume Tier 3 (CAD 400M net purchase volume)

    1.38%

    1.53%

    1.90%

    1.38%

    1.51%

    1.90%

    Independent Business in Everyday Category

    1.38%

    1.53%

    1.90%

    1.38%

    1.51%

    1.90%

    MasterPass

    1.55%

    1.89%

    2.49%

    1.44%

    1.71%

    2.06%

    SecureCode-enabled

    1.55%

    1.89%

    2.49%

    1.44%

    1.71%

    2.06%

    Electronic

    1.44%

    1.77%

    2.06%

    1.44%

    1.71%

    2.06%

    Standard

    1.55%

    1.89%

    2.49%

    1.58%

    2.29%

    2.79%


  • Mastercard will be implementing a transaction-based fee of $0.02 USD for Intracountry Utilities transactions effective October 13, 2017. This program applies for merchants classified under Merchant Category Code (MCC) 4900: Utilities – Electric, Gas, heating Oil, Sanitary, Water. 

    Please note: This fee will be charged in the equivalent CAD for accounts settled in Canadian dollars. 

    Programs

    Current Assessment Fee

    Assessment Fee as of Oct 13, 2017

    Consumer Credit Utilities Core

    0.077%

    $0.02 USD + 0.00%

    Consumer Credit Utilities World

    0.077%

    $0.02 USD + 0.00%

    Consumer Credit Utilities World Elite

    0.077%

    $0.02 USD + 0.00%

    Consumer & Commercial Utilities Debit

    0.077%

    $0.02 USD + 0.00%

  • Mastercard will be implementing a transaction-based fee of $0.004 USD for intracountry debit Mastercard contactless transactions effective October 13, 2017. 

    Program

    Current Assessment Fee

    Net Assessment Fee as of Oct 13, 2017

    Intracountry Debit

    Mastercard Contactless

    0.077%

    $0.004 USD + 0.00%


    Please note: This fee will be charged in the equivalent CAD for accounts settled in Canadian dollars. 

  • Mastercard’s Global Wholesale Travel Transaction Program (B2B) applies to wholesale travel transactions that are initiated with virtual Mastercard account numbers. This program applies to select Merchant Category Codes (MCCs), which are listed below. The fees associated with accepting these types of payment are as follows: 

     

    Fee Program

    Interchange Rate

    Global Wholesale Travel Transaction Program (B2B)

    2.00%

     

    Current

    Global Wholesale Travel Transaction
    Program B2B Fee, October 13, 2017

    International

    0.40%

    0.60%

    International

    (USD Settlement)

    0.80%

    0.60%

     

    MCC

    MCC Description

    MCC 3000-3350

    Airlines, Airline Carriers

    MCC 3351-3500

    Car Rental Agencies

    MCC 3501-3999

    Lodging—Hotels, Motels, Resorts

    MCC 4112

    Passenger Railway

    MCC 4131

    Bus Lines

    MCC 4411

    Cruise/Steamship

    MCC 4511

    Air Carriers, Airlines—not elsewhere classified

    MCC 4582

    Airports, Airport Terminals, Flying Fields

    MCC 4722

    Travel Agencies and Tour Operators

    MCC 5962

    Direct Marketing—Travel-Related Arrangement Services

    MCC 6513

    Real Estate Agents and Managers—Rentals

    MCC 7011

    Lodging—Hotels, Motels, Resorts—not elsewhere classified

    MCC 7012

    Timeshares

    MCC 7032

    Recreational and Sporting Camps

    MCC 7033

    Campgrounds and Trailer Parks

    MCC 7298

    Health and Beauty Spas

    MCC 7512

    Automobile Rental Agency—not elsewhere classified

    MCC 7513

    Truck Rental

    MCC 7519

    Motor Home and Recreational Vehicle Rental

    MCC 7991

    Tourist Attractions and Exhibits

    MCC 7997

    Clubs—Country Clubs, Membership (Athletic, Recreation, Sports), Private Golf Courses

    MCC 7999

    Recreation Services—not elsewhere classified


  • Visa’s new B2B Virtual Payments Program in Canada enables online travel agencies (OTAs), travel service providers and other travel payment providers to use virtual accounts to pay their suppliers for inventory. This program applies to select Merchant Category Codes (MCCs), which are listed below. The fees associated with accepting these types of payment are as follows: 

     

    Fee Program

    Interchange Rate

    Visa B2B Virtual Payments

    2.00%

     

     

    Current Service Fee

    B2B Virtual Service Fee October 13, 2017

    Domestic

    0.08%

    0.60%

    International

    0.48%

    1.55%

    International (USD Settlement)

    0.88%

    1.55%

     

    MCC

    MCC Description

    3000–3300

    Airlines, air carriers

    3351–3441

    Car rental agencies

    3501–3999

    Lodging – hotels, motels, resorts

    4112

    Passenger railways

    4131

    Bus lines

    4411

    Steamship and cruise lines

    4511

    Airlines and air carriers (not elsewhere classified)

    4582

    Airports, flying fields, and airport terminals

    4722

    Travel agencies and tour operators

    5962

    Direct marketing – travel-related arrangement services

    6513

    Real estate agents and managers – rentals

    7011

    Lodging – hotels, motels, resorts, central reservation services (not elsewhere classified)

    7012

    Timeshares

    7032

    Sporting and recreational camps

    7033

    Trailer parks and campgrounds

    7298

    Health and beauty spas

    7512

    Automobile rental agency

    7513

    Truck and utility trailer rentals

    7519

    Motor home and recreational vehicle rentals

    7991

    Tourist attractions and exhibits

    7997

    Membership clubs (sports, recreation, athletic), country clubs, and private golf courses

    7999

    Recreation services (not elsewhere classified)