Effective Date :July 2, 2024 (Mastercard transactions submitted for clearing and settlement on July 1, 2024, will also be subject to the new interchange rates)
Description: Mastercard is introducing interchange rates for the Mastercard Enterprise Solution Wholesale Travel program.
Impact: This update will impact merchants who accept wholesale travel transactions that are initiated with virtual Mastercard account numbers.
Application: Mastercard is introducing new product codes with different interchange rates for the existing Mastercard Wholesale Travel Program.
Refer to the following table for the updated rates:
|
Program Codes |
Program Names |
Fee |
|
MTL |
Mastercard B2B Product 18 |
1.45 % |
|
MTM |
Mastercard B2B Product 19 |
1.35 % |
Note: The Mastercard Wholesale Travel Program Virtual cards can now be processed under all Merchant Category codes. As a result, these transactions will draw the following existing Mastercard Wholesale Travel Transaction Program B2B Fee:
|
B2B Program ID |
Rates |
|
Domestic |
0.678000% |
|
International |
0.678000% |
Effective Date : April 25,2024
Description: Visa will be introducing two new Processing Integrity Fees intended to reduce cardholder impacts cause by erroneous authorizations and force post transactions (Misuse of Authorization System Fee and the Unmatched Clearing Fee).
Impact: This fee will be applicable to merchants that process Visa transactions on both purchases and merchandise returns (refunds).
The Misuse of Authorization System Fee will be applied to both purchases and merchandise returns (refunds) to all transactions that are cleared but not authorized (Force-Post and Store & Forward (SAF) transactions).
The Unmatched Clearing Fee will be applied to both purchases and merchandise returns (refunds) when clearing transactions are not cleared with the values received in the authorization response or not cleared within the time frames below:
|
Transaction Type |
New Maximum Time Frame |
|
CNP (cardholder-initiated) transactions |
10 Calendar Days
|
|
Transactions with an estimated authorization indicator for any of the following merchants:
|
30 Calendar Days |
|
Transactions with an estimated authorization indicator for any of the following merchants:
|
10 Calendar Days
|
|
All other CP transactions |
5 Calendar Days |
|
All merchant-initiated transactions |
5 Calendar Days |
To avoid these fees, merchants should authorize all transactions and clear/close authorizations in a timely manner.
Application: The Visa New Processing Integrity Fee will be applied $0.05 USD per transaction.
Effective Date : April 1,2024
Description: Visa will be introducing pricing for Card Verification Value 2 (CVV2). This fee will be assessed on a per-transaction basis when the CVV2 yields a match or no match result.
Impact: This update will impact merchants and accounts who process Visa Credit and Debit Transactions.
This fee will not be charge for the following exceptions:
Application: The VISA CVV2 Pricing will be assessed at $0.002825 USD per Match/No Match result.
Effective Date : April 1,2024
Description: Visa will be introducing a new Commercial Solutions Fee. This will be a 0.0113% assessment fee which will be calculated on sales volumes when a Visa Business Solution product is used.
Impact: This update will impact all merchants who process Visa commercial Credit and Debit Transactions.
Application: The Visa Commercial Solutions Fee will be applied at 0.0113%.
Effective Date : April 1,2024
Description: Mastercard is introducing an additional threshold of 35 declined attempts on the same Merchant Account Number, at the same card acceptor, and for the same amount within a 30-day period.
Impact: The Mastercard Excessive Authorization Attempts Fee will apply to all Mastercard merchants who submit excessive authorization attempts. Currently, Mastercard assesses a fee for each authorization after 10 consecutive declined attempts on the same account number and the same acceptor within a 24-hour period. Mastercard will not assess the fee twice for the same authorization decline.
Application: The Mastercard Excessive Authorization Attempts Fee will be $0.565 USD per Excessive Authorization Attempt.
Effective Date : April 1,2024
Description: The Interac Switch (Assessment/Card Brand) Fee for Interac Debit card present transactions will decrease.
Impact: This fee will apply to all Interac Debit card present transactions.
Application: The fee will be reduced from $0.014523 to $0.012859 per transaction (a difference of $0.001664).
Description: Mastercard is revising the pricing of existing Transaction Processing Excellence (TPE) programs over the next three years.
Impact: Mastercard Transaction Processing Excellence (TPE) programs aim to identify and address unfavorable transaction processing behavior that impact the network.
A basis point (bp) fee which applies a specific rate against a transaction volume. A basis point is the equivalent to 0.01 percent; therefore, a fee that charges one (1) basis point on reported gross dollar volume (GDV) would be 0.0001 times that amount.
A quantity-based fee applies the specified rate to the number of transactions being billed.
The following table presents the fee revisions effective January 1, 2024:
|
Name |
Current rate (USD) |
January 1, 2024 |
Minimum Amount (represents the minimum amount billed) |
|
Mastercard - Processing Integrity Fee - Final Auth |
0.282500% |
0.339000% |
$0.056500 |
|
Mastercard - Processing Integrity Fee - Undefined Auth |
$0.050850 |
0.339000% |
$0.056500 |
|
Mastercard -Processing Integrity Fee -Not Reversed/Cleared Preauthorization |
$0.050850 (USD) |
0.339000% |
$0.056500 |
|
Mastercard - Nominal Amount Authorization Fee |
$0.050850 (USD) |
$0.113000 (USD) |
N/A |
| Mastercard - Merchant Advice Code | $0.033900 (USD) | $0.113000 (USD) | N/A |
January 1, 2025:
|
Name |
Current rate (USD) |
January 1, 2025 |
Minimum Amount (represents the minimum amount billed) |
|
Mastercard - Processing Integrity Fee - Final Auth |
0.282500% |
0.395500% |
$0.056500 |
|
Mastercard - Processing Integrity Fee -UndefinedAuth |
0.050850$ |
0.395500% |
$0.056500 |
|
Mastercard -Processing Integrity Fee -Not Reversed/Cleared Preauthorization |
$0.050850 (USD) |
0.395500% |
$0.056500 |
|
Mastercard - Nominal Amount Authorization Fee |
$0.050850 (USD) |
$0.282500 (USD) |
N/A |
| Mastercard - Merchant Advice Code | $0.033900 (USD) | $0.282500 (USD) | N/A |
January 1, 2026:
|
Name |
Current rate (USD) |
January 1, 2026 |
Minimum Amount (represents the minimum amount billed) |
|
Mastercard - Processing Integrity Fee - Final Auth |
0.282500% |
0.452000% |
$0.113000 |
|
Mastercard - Processing Integrity Fee -UndefinedAuth |
$0.050850 |
0.452000% |
$0.113000 |
|
Mastercard -Processing Integrity Fee -Not Reversed/Cleared Preauthorization |
$0.050850 (USD) |
0.452000% |
$0.113000 |
|
Mastercard - Nominal Amount Authorization Fee |
$0.050850 (USD) |
$0.565000 (USD) |
N/A |
| Mastercard - Merchant Advice Code | $0.033900 (USD) | $0.565000 (USD) | N/A |
Effective Date: December 1, 2023 (Interac Mobile Debit transactions submitted for clearing and settlement on November 30, 2023, will also be subject to the new interchange fee).
Description: Interac is enabling special volume-based tiered pricing to the Interac Mobile Debit (In-App/In-Browser) Interchange Fee for specific Merchant Category Codes (“MCCs”).
Impact: The update will impact merchants and accounts that process Interac Mobile Debit transactions.
Application: Interac is introducing a new Interchange fee structure for Mobile Debit transactions. Currently, all Interac mobile debit transactions draw 0.6% interchange (capped at $1.80)
Refer to the following table for the updated rates:
| Tier | Rate | Cap | Qualification |
| 1 | 0.60% |
$1.80 |
Applicable to merchants that do not qualify for Tiers 2, 3 and 4 |
| 2 | 0.575% |
$1.725 |
Applicable to merchants in the Growing Market Segments MCCs* processing 500,001- 1,000,000 transactions per calendar year |
| 3 | 0.55% |
$1.65 |
Applicable to merchants in the Growing Market Segments MCCs* processing >1,000,000 transactions per calendar year |
| 4 | $0.35 |
- |
Applicable to MCC 9311 (Tax Payments) merchants only |
*Growing Market Segments (Qualifying MCCs for Tier 2 and 3)
• Local and Suburban Commuter Passenger Transportation (MCC 4111)
• Wholesale Clubs (MCC 5300)
• Discount Stores (MCC 5310)
• Grocery Stores and Supermarkets (MCC 5411)
• Taxicabs and Limousines (MCC 4121)
• Clothing and Accessories (MCC 5611,5137, 5621, 5631, 5641, 5651,5661, 5691)
• Package Stores Beer, Wine, Liquor (MCC 5921)
• Parking Lots and Garages (MCC 7523)
Effective Date: October 1, 2023 (Delayed Q4, 2024)
Description: Mastercard is introducing a new fee as part of the Transaction Processing Excellence (TPE) Program to drive positive processing behavior:
As part of the M/Chip Deployment Performance Program, Mastercard will assess a fee of USD $5.00 for each terminal deemed to have implementation issues as indicated below
Refer to the following table for the rates
|
Effective Date: |
Rate: |
|
TBD |
USD $5.00 |
|
TBD |
USD $8.00 |
|
TBD |
USD $12.00 |
Impact: Moneris will pass through to merchants the Mastercard M/Chip Deployment Performance Program fee of USD $5.00 per terminal, per month for terminals determined to be improperly configured and resulting in a technology failure (as described above).
You may have received prior communication regarding the need for a terminal upgrade with respect to the above noted issue(s). To avoid this fee, please contact us at Moneris.com/support.
Effective Date: November 1, 2023
Description: Merchants categorized in Toll Roads & Bridges MCC (4784) will qualify for Tier 1 Low-ticket merchant pricing.
Impact: This update will apply to merchants in the above specified MCC who accept Interac Flash transactions.
Application: This update will result in an interchange reduction from $0.035 to $0.020 (-$0.015) for qualifying Interac Flash transactions. The remainder of the MCCs remain unchanged and are set out in the following Table 1– Interac Flash flat-fee tiered interchange pricing structure below.
|
Tiers |
Flat fee per transaction |
Criteria for merchant qualification |
|
Tier 1 Low-ticket Merchants |
$0.020 |
. Qualifying segments are:
|
|
Tier 2 High-volume Merchants |
$0.025 |
Merchants that meet a minimum annual transaction volume threshold. The transaction volume threshold is 20 million Interac Flash transactions, based on transaction volume in the previous calendar year. |
|
Tier 3 All other Merchants |
$0.035 |
Merchants that do not otherwise qualify for Tier 1 and Tier 2. |
|
Tier 4 All Merchants
|
$0.055 |
All Merchants |
*Effective November 1, 2023
On March 28, 2023, the Federal Budget proposed amendments to the Excise Tax Act (ETA) where certain services rendered by Payment Card Network Operators (PCNOs) will be subject to HST, which is non-recoverable by Moneris. This will impact the fees Moneris is charged and, by extension, passes through to all merchants. The excise tax update does not affect Interchange.
On June 22, 2023 these changes to the ETA were enacted and Moneris will see PCNO fees increase by 13 %. For this reason, and in accordance with merchant agreements, Moneris will pass through a corresponding increase of the affected fees as outlined in the table below following your 90-day notice period.
|
Fee Name* |
Current Fee |
Updated fee |
|
Amex - Participation Fee |
0.120000% |
0.135600% |
|
Amex - Inbound Fee |
0.600000% |
0.678000% |
|
Discover - Assessment |
0.063000% |
0.071190% |
|
Discover - International Processing |
0.400000% |
0.452000% |
|
Interac - Assessment |
$0.012852 |
$0.014523 |
|
Interac - eCommerce Assessment |
$0.025000 |
$0.028250 |
|
Mastercard - Assessment |
0.087000% |
0.098310% |
|
Mastercard - Credential Continuity** |
$0.030000 |
$0.033900 |
|
Mastercard - Decline Reason Code Service** |
$0.020000 |
$0.022600 |
|
Mastercard - Debit Mastercard Assessment Fee |
0.087000% |
0.098310% |
|
Mastercard - Debit Mastercard Utilities Assessment Fee** |
$0.020000 |
$0.022600 |
|
Mastercard - Debit Mastercard Contactless Assessment Fee** |
$0.004000 |
$0.004520 |
|
Mastercard - Digital Enablement Minimum** |
$0.020000 |
$0.022600 |
|
Mastercard - Digital Enablement Standard |
0.020000% |
0.022600% |
|
Mastercard - Digital Enablement Maximum** |
$0.200000 |
$0.226000 |
|
Mastercard - Excessive Authorization Attempts Fee** |
$0.500000 |
$0.565000 |
|
Mastercard - Foreign Assessment |
0.600000% |
0.678000% |
|
Mastercard - Foreign Assessment Transaction Currency Non-CAD |
1.000000% |
1.130000% |
|
Mastercard - Freight Program Assessment |
0.500000% |
0.565000% |
|
Mastercard - Global Wholesale Travel Transaction B2B Fee |
0.600000% |
0.678000% |
|
Mastercard - Humanitarian Program Assessment |
0.250000% |
0.282500% |
|
Mastercard - Humanitarian Program Assessment Fee |
0.250000% |
0.282500% |
|
Mastercard - Merchant Advice Code** |
$0.030000 |
$0.033900 |
|
Network Connectivity Fee (Mastercard)** |
$0.008600 |
$0.009718 |
|
Mastercard - Nominal Amount Authorization Fee** |
$0.045000 |
$0.050850 |
|
Mastercard - Pre-Authorization |
0.050000% |
0.056500% |
|
Mastercard - Pre-Authorization Minimum** |
$0.010000 |
$0.011300 |
|
Mastercard - Processing Integrity Fee - Final Auth |
0.250000% |
0.282500% |
|
Mastercard - Processing Integrity Fee - Final Auth Minimum** |
$0.040000 |
$0.045200 |
|
Mastercard - Processing Integrity Fee - Undefined Auth** |
$0.045000 |
$0.050850 |
|
Mastercard - Processing Integrity Fee - Pre Auth** |
$0.045000 |
$0.050850 |
|
Mastercard - Utilities Assessment Fee** |
$0.020000 |
$0.022600 |
|
UnionPay - Service Fee |
0.100000% |
0.113000% |
|
UnionPay - eCommerce Service |
0.200000% |
0.226000% |
|
Visa - Assessment |
0.090000% |
0.101700% |
|
Visa - Address Verification Service** |
$0.001000 |
$0.001130 |
|
Visa - B2B Virtual Service Domestic |
0.600000% |
0.678000% |
|
Visa - B2B Virtual Service Foreign |
1.550000% |
1.751500% |
|
Visa - Base II Return** |
$5.000000 |
$5.650000 |
|
Visa - Consumer Bill Payment Service** |
$0.100000 |
$0.113000 |
|
Visa - Domestic Account Verification** |
$0.010000 |
$0.011300 |
|
Visa - Domestic Category 1 Decline** |
$0.100000 |
$0.113000 |
|
Visa - Domestic Excess Reattempted Transactions** |
$0.100000 |
$0.113000 |
|
Visa - Estimated Authorization Fee |
0.020000% |
0.022600% |
|
Visa - Foreign Assessment |
0.600000% |
0.678000% |
|
Visa - Foreign Assessment Single Currency |
1.000000% |
1.130000% |
|
Visa - Foreign Category 1 Decline** |
$0.150000 |
$0.169500 |
|
Visa - Foreign Excess Reattempted Transactions** |
$0.150000 |
$0.169500 |
|
Visa - Incremental Authorization Fee |
0.020000% |
0.022600% |
|
Visa - Installment access Fee |
0.200000% |
0.226000% |
|
Visa - International Account Verification** |
$0.020000 |
$0.022600 |
|
Visa - Multi-Currency Non-Domestic Settlement |
0.100000% |
0.113000% |
|
Visa - Non-Domestic Settlement** |
0.100000% |
0.113000% |
|
Visa - Real-time Funds Assessment** |
$0.100000 |
$0.113000 |
|
Visa - Repeat Authorization Decline Fee** |
$1.000000 |
$1.130000 |
|
Visa - Visa Debit Assessment |
0.090000% |
0.101700% |
*All fees do not apply to all merchants. Fee applicability is dependent on which payment networks a merchant supports.
**These fees are charged by PCNOs to Moneris in U.S. dollars. If you process transactions in U.S dollars these fees will be charged to you in U.S. dollars. If you process transactions in Canadian dollars these will be converted to and charged to you in Canadian dollars.
Effective Date (Delayed) : October 1, 2023
Description: Visa is introducing a non-compliance assessment fee of $0.17 USD for transactions processed at terminals unable to support EMV. Transactions processed at chip-enabled devices will not be assessed this fee.
Impact: This update will impact merchants and accounts accepting Visa EMV and UCAT merchants.
Application: The Visa EMV non-compliance assessment Fee will be applied at $0.15 USD for domestic transactions and $0.15 USD for cross-border transactions.
Effective Date: October 13, 2023
Description: Mastercard is introducing interchange rates for the Mastercard Enterprise Solution Wholesale Travel program.
Impact: This update will impact merchants who accept wholesale travel transactions that are initiated with virtual Mastercard account numbers.
Application: Mastercard is introducing new product codes with different interchange rates for the existing Mastercard Global Wholesale Travel Program.
Refer to the following table for the updated rates:
|
Program Codes |
Program Name |
Fee |
|
MTA |
Mastercard B2B Product 7 |
2.00% |
|
MTB |
Mastercard B2B Product 8 |
1.90% |
|
MTC |
Mastercard B2B Product 9 |
1.80% |
|
MTD |
Mastercard B2B Product 10 |
1.70% |
|
MTE |
Mastercard B2B Product 11 |
1.60% |
|
MTF |
Mastercard B2B Product 12 |
1.50% |
|
MTG |
Mastercard B2B Product 13 |
1.40% |
|
MTH |
Mastercard B2B Product 14 |
1.30% |
|
MTI |
Mastercard B2B Product 15 |
1.20% |
|
MTJ |
Mastercard B2B Product 16 |
1.10% |
|
MTK |
Mastercard B2B Product 17 |
1.00% |
Note: The Mastercard Enterprise Solution Wholesale Travel Program Virtual cards can now be processed under all Merchant Category codes. As a result, these transactions will draw the following existing Global Wholesale Travel Transaction Program B2B Fee:
|
B2B Program ID |
Rates |
|
Domestic |
0.60% |
|
International |
0.60% |
Effective Date: October 14, 2023 (Visa transactions submitted for clearing and settlement on October 13, 2023, will also be subject to the new program changes and rates)
Description: Visa will implement changes to the interregional interchange fee programs for Visa Consumer and Commercial transactions.
Impact: As a result of these changes Visa will eliminate some existing interchange fee programs and introduce new programs with new rates.
Application: The table below contains a summary of changes to Interregional Interchange Fee Programs for Visa Consumer and Commercial Transactions.
|
Removed |
New |
Updated |
|
Consumer Electronic |
Super Premium Card-absent (Alternative) |
Super Premium Card-present |
|
Consumer Acquirer Chip |
Super Premium Downgrade |
Premium Card-present |
|
Consumer Issuer Chip |
Premium Card-absent (Alternative) |
|
|
Consumer Electronic Commerce Merchant |
Premium Downgrade |
|
|
Consumer Secure Electronic Commerce |
Non-Premium Card-present |
|
|
Standard |
Non-Premium Card-absent (Alternative) |
|
|
|
Non-Premium Downgrade |
|
|
|
Business Card-absent (Alternative) |
|
|
|
Business Downgrade |
|
|
|
Corporate Card-absent (Alternative |
|
|
|
Corporate Downgrade |
|
|
|
Purchasing Card-absent (Alternative) |
|
|
|
Purchasing Downgrade |
|
Updated fee programs:
The programs below have revised interchange rates.
|
Program |
Current Rate |
New Rates |
|
Super Premium Card-present (Base) |
1.97% |
1.98% |
|
Premium Card-present (Base) |
1.80% |
1.85% |
New fee programs:
The interchange fee programs below are being introduced.
|
Program/Fee Name
|
Rates |
|
Super Premium Card-absent (Alternative) |
1.98% |
|
Super Premium Downgrade |
2.03% |
|
Premium Card-absent (Alternative) |
1.85% |
|
Premium Downgrade |
1.90% |
|
Non-Premium Card-present |
1.10% |
|
Non-Premium Card-absent (Alternative) |
1.60% |
|
Non-Premium Downgrade |
1.65% |
|
Business Card-absent (Alternative) |
2.00% |
|
Business Downgrade |
2.05% |
|
Corporate Card-absent (Alternative) |
2.00% |
|
Corporate Downgrade |
2.05% |
|
Purchasing Card-absent (Alternative) |
2.00% |
|
Purchasing Downgrade |
2.05% |
Refund Transactions:
As a result of this change, interregional refund transactions will now receive lower interchange rates. The interchange programs below and rates are being introduced for refund transactions.
|
Program |
Rate |
|
Consumer Credit Voucher |
1.00% |
|
Commercial Credit Voucher (including business) |
1.80% |
Effective Date: May 8, 2023 (Mastercard transactions submitted for clearing and settlement on May 7, 2023, will also be subject to the new interchange rates).
Description: Mastercard will modify Canada Intracountry Consumer Credit Contactless interchange rates.
Impact: The update will impact merchants and accounts accepting Mastercard Contactless.
Application: Refer to the following table for the updated rates:
|
Interchange Program Type |
Current |
New |
Difference |
|
Core |
0.87% |
0.92% |
0.05% |
|
World |
1.16% |
1.22% |
0.06% |
|
World Elite |
1.48% |
1.56% |
0.08% |
|
Muse |
1.57% |
1.65% |
0.08% |
Effective Date: April 15, 2023 (Transactions submitted for clearing and settlement on April 14, 2023, will also be subject to the new rates)
Description: The American Express Inbound Fee on foreign issued cards other than cards issued by the Japan Credit Bureau (JCB) and foreign issued debit cards will increase.
Impact: The new fee will impact merchants who process AMEX OptBlue transactions.
Application: AMEX OptBlue Inbound Fee will increase from 0.40% to 0.60% (a difference of 0.20%).
Effective Date: April 1, 2023
Description: The Interac Switch (Assessment/Card Brand) Fee for Interac Debit card present transactions will increase.
Impact: This fee will apply to all Interac Debit card present transactions.
Application: The Interac Assessment Fee of $0.009450 will increase to $0.012852 per transaction (a difference of $0.003402).
Effective Date: April 1, 2023
Description: Visa will introduce and implement a fee for acquirer account verification messages on client invoices, verification provides additional data points to help protect against fraud associated with invalid or misused credentials.
Impact: The new fee will impact merchants who process Visa credit transactions.
Application: The new fee will be $0.01 USD Per Domestic Account Verification and $0.02 USD Per Foreign Account Verification.
Effective Date: April 15, 2023 (Transactions submitted for clearing and settlement on April 14, 2023, will also be subject to the new rates)
Description: Visa will update client-to-client (C2C) fees applicable to domestic Canadian original credit transactions (OCTs).
Impact: The new fee will impact merchants who process domestic Visa original credit transactions.
Application: Visa will decrease its domestic Canadian fee for OCTs from $0.10 to $0.03 per transaction (a difference of $0.07).
Effective Date: April 1, 2023
Description: Visa will update the domestic Canadian fee for original credit transactions (OCTs)
Impact: The new fee will impact merchants who process Visa OCTs.
Application: Visa will update the domestic Canadian fee for OCTs from 0.05% (max of USD $0.25 USD) to $0.10 USD per transaction.
Effective Date: April 17, 2023
Description: Visa will introduce two new fees.
The Estimated Authorization Fee will be 0.02% for any approved Estimated Authorizations. The Incremental Authorization Fee will be 0.02% for any approved Incremental Authorizations.
Impact: The new fees will impact merchants who process Visa Credit and Debit transactions and process estimated and/or incremental authorizations
Application: The Estimated Authorization Fee will be 0.02% for any approved Estimated Authorizations. The Incremental Authorization Fee will be 0.02% for any approved Incremental Authorizations.
Effective Date: March 1, 2023 (Transactions submitted for clearing and settlement on February 28, 2023, will also be subject to the new rates).
Description: The Visa Installment Solutions fee table for merchant-funded installment offers will be updated.
Impact: The update will impact merchants and accounts accepting Visa Credit and Visa Debit through Visa Installment Solutions
Application: Refer to the following table for the updated rates:
|
Installment Tenure |
Current Rate |
New Rate |
Difference |
|
3 months |
1.90% |
1.90% |
0.00% |
|
6 months |
2.50% |
2.99% |
0.49% |
|
12 months |
4.00% |
4.50% |
0.50% |
|
18 months |
5.40% |
6.25% |
0.85% |
|
24 months |
8.20% |
9.50% |
1.30% |
|
36 months |
12.40% |
14.75% |
2.35% |
|
16.80% |
19.99% |
3.19% |
Effective Date: March 13, 2023
Description: Mastercard will introduce the Mastercard Digital Enablement Fee to support enhancements to fraud, safety, and security in the payments ecosystem.
As part of the introduction of the new fee, Mastercard will retire the Mastercard Digital Commerce Development Fee (0.02% on e-commerce authorizations).
Impact: The Mastercard Digital Enablement Fee will apply to all merchants who process card not present Mastercard authorizations.
Application: The fee will be applied at 0.02% on all card not present authorizations with a minimum billing of $0.02 USD and a maximum of $0.20 USD per transaction. Minimum and maximum thresholds apply as follows:
|
Authorization amount |
Rate |
|
Less than or equal to $100.00 USD |
$0.02 USD |
|
Between $100.01 USD – $999.99 USD |
0.02% |
|
Greater than or equal to $1,000.00 USD |
$0.20 USD |
Effective Date: November 1, 2022
Description: Interac is introducing a new pricing tier for Debit contactless transactions.
Impact: All merchants regardless of current tier classification will incur a flat fee for Debit contactless transactions between $100.01 and $250.00. Fees for transactions below $100.01 will remain unchanged.
Application: The new flat fee of $0.055 will apply to all Interac Debit contactless transactions between $100.01 and $250.00, regardless of the merchant’s current tier classification.
| Transaction Amount | Tiers | Flat-fee per transaction | Criteria for each merchant qualification |
|
Current
New (Effective November 1, 2022) |
Tier 1 Low-ticket Merchants |
$0.020 |
Merchants in segments with an average Interac Debit transaction size below $20. Qualifying segments include:
|
|
Tier 2 High-volume Merchants |
$0.025 |
Merchants that meet a minimum annual transaction volume threshold. The transaction volume threshold is 20 million Interac Flash transactions, based on transaction volume in the previous calendar year. |
|
|
Tier 3 All other Merchants |
$0.035 |
Base interchange rate that applies to all other merchants. |
|
| New (Effective November 1, 2022) $100.01 to $250.00 |
Tier 4
All Merchants |
$0.055 | All merchants. |
Effective Date: November 2022
Description: Mastercard will increase the Excessive Authorization Attempts Fee and will reduce the threshold of declined authorization attempts needed to incur this fee.
Impact: The Mastercard Excessive Authorization Attempts Fee will apply to all Mastercard merchants who submit excessive authorization attempts, which meet the following criteria:
(i) after 10 previously declined authorizations (decreased from 20),
(ii) made on the same card,
(iii) on the same merchant account, and
(iv) within a 24-hour period.
Application:
Effective Date: October 15, 2022 (Visa transactions submitted for clearing and settlement on October 14, 2022 will also be subject to the new interchange rates).
Description: Visa is introducing new card products as part of their B2B Virtual Payments program.
Impact: The update will impact merchants who accept transactions initiated with virtual Visa account numbers under Visa’s B2B Virtual Payments program.
Application: Program IDs for the new card products and interchange rates are as follows:
| Additional B2B Program IDs | Description | Rate |
| A1 | B2B Program 1 | 0.80% |
| A2 | B2B Program 2 | 1.00% |
| A3 | B2B Program 3 | 1.20% |
| A4 | B2B Program 4 | 1.40% |
| A5 | B2B Program 5 | 1.60% |
| A6 | B2B Program 6 | 1.80% |
| A7 | B2B Program 7 | 2.00% |
| A8 | B2B Program 8 | 0.90% |
| A9 | B2B Program 9 | 1.10% |
| B1 | B2B Program 10 | 1.30% |
| B2 | B2B Program 11 | 1.50% |
| B3 | B2B Program 12 | 1.70% |
| B4 | B2B Program 13 | 1.90% |
*Maximum transaction amount of $499,999.99 (USD) for prepaid cards. Maximum transaction amount of $749,999.99 (USD) for all other transactions. USD converted to CAD as applicable.
Effective Date: DEFERRED UNTIL FURTHER NOTICE (previously effective October 15, 2022).
Description: Visa will introduce two new fees for transactions not settled in the merchant’s domestic currency:
1. Visa Non-domestic Settlement Fee
2. Visa Multi-currency Non-domestic Settlement Fee
Impact: 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.
Application: The Visa Non-domestic Settlement Fee will be applied at 0.10% of the transaction amount (for those settling in USD). The Visa Multi-currency Non-domestic Settlement Fee will be applied at 0.10% of the transaction amount.
Effective Date: October 15, 2022 (Visa transactions submitted for clearing and settlement on October 14, 2022, will also be subject to the new interchange rates).
Description: Visa will implement changes to the structure, rates, and qualification criteria of their large ticket and straight-through processing (STP) platforms.
Impact: These changes will impact merchants who use STP for Visa transactions (Moneris B2B Pay).
Application: 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:
|
STP Fee Program |
Rate |
|
Transaction amount: $7,000–$14,999 |
1.30% + $35 |
|
Transaction amount: $15,000–$49,999 |
1.20% + $35 |
|
Transaction amount: $50,000 and over |
1.10% + $35 |
The new large ticket interchange rates are as follows:
|
Large Ticket Rate Program |
Rate |
|
Transaction amount: $100,000–$249,999 |
1.30% |
|
Transaction amount: $250,000 and over |
1.00% |
Existing corporate and purchasing rates outlined below will apply for transactions that do not qualify for the new large ticket interchange rates:
|
Fee Program |
Corporate |
Purchasing |
|
Electronic |
1.90% |
1.90% |
| Enhanced Data - Fuel | 1.80% | 1.80% |
| Enhanced Data – Level 2 | 1.60% | 1.60% |
| Enhanced Data – Level 3 | 1.40% | 1.40% |
| Standard | 2.00% | 2.00% |
Effective Date: October 15, 2022 (Visa transactions submitted for clearing and settlement on October 14, 2022 will also be subject to the new interchange rates).
Description: Visa is introducing new interchange rates for their 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.
Impact: The update will impact merchants who accept transactions initiated with virtual Visa account numbers under Visa’s B2B Virtual Payments program.
Application: The new interchange rates being added for the additional B2B Program IDs as well as newly eligible MCCs are as follows:
| Additional B2B Program IDs |
Description |
Rate |
| A8 |
B2B Program 8 |
0.90% |
| A9 |
B2B Program 9 |
1.10% |
| B1 |
B2B Program 10 |
1.30% |
| B2 | B2B Program 11 | 1.50% |
| B3 | B2B Program 12 | 1.70% |
| B4 | B2B Program 13 | 1.90% |
|
MCC |
MCC Description |
|
4111 |
Local and Suburban Commuter Passenger Transportation, Including Ferries |
|
4121 |
Taxicabs and Limousines |
|
4789 |
Transportation Services (not elsewhere classified) |
| 5812 | Eating Places and Restaurants |
| 5813 | Drinking Places (alcoholic beverages) – Bars, Taverns, Nightclubs, Cocktail Lounges, and Discotheques |
| 5814 | Fast Food Restaurants |
| 5992 | Florists |
| 7832 | Motion Picture Theaters |
| 7922 | Ticket Agencies and Theatrical Producers (except motion pictures) |
| 7992 | Public Golf Courses |
| 9399 | Government Services (not elsewhere classified) |
Effective Date: October 15, 2022 (AMEX OptBlue transactions submitted for clearing and settlement on October 14, 2022, will also be subject to the new interchange rates).
Description: American Express will introduce new wholesale discount rate programs as well as revise the merchant category codes (MCCs) that fall into the applicable industry categories. In addition, American Express will update the rate structure of their healthcare program.
Impact: The new wholesale discount rate programs will impact merchants who process AMEX OptBlue transactions. Changes to the AMEX OptBlue healthcare program will impact healthcare merchants processing AMEX OptBlue transactions.
Application: New wholesale discount programs, revised MCCs, and updates to the healthcare program have been outlined below.
New wholesale discount rate programs:
| Industry Category |
Credit (Card Present) |
Credit (Card Not Present) |
Foreign Issued Debit Card | ||
|
Tier 1 |
Tier 2 |
Tier 1 |
Tier 2 |
||
|
Emerging Markets |
(All transaction sizes) 1.18% |
(All transaction sizes) 1.48% |
1.28% | ||
|
Residential Rent |
(All transaction sizes) 1.18% |
(All transaction sizes) 1.38% |
|||
| Utilities | (≤$1,000) $0.68 | (>$1,000) 1.88% | (≤$1,000) $0.68 | (>$1,000) 1.88% | |
| Industry Category |
Credit (Card Present) |
Credit (Card Not Present) |
||
|
Tier 1 |
Tier 2 |
Tier 1 |
Tier 2 |
|
|
B2B/Wholesale |
(≤$1,000) 1.60% |
(>$1,000) 2.00% |
(≤$1,000) 1.90% |
(>$1,000) 2.30% |
|
Other |
(≤$500) 1.60% |
(>$500) 2.00% |
(≤$500) 1.90% |
(>$1,000) 2.30% |
| Services and Professional Services | ||||
Revised healthcare program:
| Industry Category |
Credit (Card Present) |
Credit (Card Not Present) |
||||
|
Current rate |
New rate |
Difference |
Current rate |
New rate |
Difference |
|
|
Healthcare (≤$500) |
1.60% |
(All transaction sizes) 1.34% | -0.26% |
1.90% |
(All transaction sizes) 1.64% | -0.26% |
|
Healthcare (>$500) |
2.00% |
-0.66% |
2.30% |
-0.66% | ||
Revised MCCs by Industry Category:
|
MCC |
MCC Description |
Current industry category | New industry category |
|
5960 |
Direct Marketing – Insurance Services |
B2B/Wholesale | Emerging markets |
|
6300 |
Insurance Sales, Underwriting, and Premiums |
||
|
4111 |
Local and Suburban Commuter Passenger Transportation |
Other | |
|
4112 |
Passenger Railways |
||
|
4131 |
Bus Lines |
||
|
4784 |
Tolls and Bridge Fees |
||
|
7032 |
Sporting and Recreational Camps |
||
|
8211 |
Elementary and Secondary Schools |
||
|
8220 |
Colleges, Universities, Professional Schools, and |
||
|
8241 |
Correspondence Schools |
||
|
8244 |
Business and Secretarial Schools |
||
|
8249 |
Vocational and Trade Schools |
||
|
8299 |
Schools and Educational Services (Not Elsewhere) |
||
|
8351 |
Child Care Services |
||
|
8398 |
Charitable and Social Service Organizations |
||
|
9211 |
Court Costs, Including Alimony and Child Support |
||
|
9222 |
Fines |
||
|
9311 |
Tax Payments |
||
|
9399 |
Government Services (Not Elsewhere Classified) |
||
|
7523 |
Parking Lots, Parking Meters, and Garages |
Services & Professional Services | |
|
7911 |
Dance Halls, Studios, and Schools |
||
| 6513 | Real Estate Agents and Managers – Rentals | Other | Residential Rent |
| 8050 | Nursing and Personal Care Facilities | Healthcare | |
| 4900 | Utilities – Electric, Gas, Water, and Sanitary | Services & Professional Services | Utilities |
| 0742 | Veterinary Services | Services & Professional Services | Healthcare |
| 4119 | Ambulance Services |
Effective Date: July 1, 2022
Description: Mastercard will increase its Assessment Fee from 0.080% to 0.087% (a difference of 0.007%).
Impact: The Mastercard Assessment Fee applies to merchants that process Mastercard transactions.
Application:
|
Fee Name |
Current Fee |
New Fee |
Difference |
|
Mastercard Assessment Fee |
0.080% |
0.087% |
0.007% |
Effective Date: May 1, 2022
Description: Mastercard is introducing their Credential Continuity Program and a corresponding fee to address outdated credentials and help improve authorization rates for recurring card-not-present (CNP) transactions in Canada.
Impact: The Mastercard Credential Continuity Fee will apply to merchants that send a recurring CNP Mastercard transaction with outdated payment credentials.
Application: Applies to each recurring payment authorization decline made with an outdated credential after receiving response code 416 (Declined Use Updated Card) in excess of 100 declines regardless of Primary Account Number (PAN). After the 100th recurring payment authorization decline, a $0.03 USD per-transaction fee will be applied to all 100 authorization requests and any subsequent requests that meet the above criteria.
To help prevent incurring fees for submitting outdated credentials with your recurring payments, consider adding Mastercard’s Automatic Billing Updater (ABU) database service, which helps verify if Mastercard credentials are up-to-date.
Effective Date: May 1, 2022
Description: Mastercard is introducing a Merchant Advice Code (MAC) Fee as part of their Transaction Processing Excellence (TPE) Program for providing response codes to help minimize card-not-present (CNP) transactions that should not be re-attempted.
Impact: The MAC Fee will apply to merchants who process CNP Mastercard transactions.
Application: A fee of $0.03 USD will apply to CNP transactions following your first re-attempt of a transaction on the same card and the same amount within in the past 30 days after receiving response codes 421 (Card Declined Do Not Retry) or 422 (Stop Payment Do Not Retry).
Effective Date: May 1, 2022
Description: The Mastercard Pre-authorization Fee will apply to automatic fuel dispensers (AFDs) (MCC 5542) processing pre-authorized transactions in Canada.
Impact: The fee will apply to merchants in MCC 5542 who process pre-authorized Mastercard transactions in Canada.
Application: The Mastercard Pre-authorization Fee will be calculated as 0.05% of the pre-authorized completion amount, with a minimum of $0.01 USD per pre-authorization.
Effective Date: April 23, 2022
Description: Visa will introduce domestic consumer credit interchange rate programs that will provide differentiated fees for card-not-present (CNP) transactions processed using Visa EMV® payment tokens.
Impact: The interchange cost benefit of 5bps will apply for merchants who process CNP transactions using Visa EMV® payment tokens.
Application: The incentivized token rates are as follows:
| Rate Program |
Token Rates (New Programs) |
Non-token Rates (Existing Rates, No Change) |
||||
|
Core |
Infinite |
Infinite Privilege |
Core |
Infinite |
Infinite Privilege |
|
|
Card-not-present |
1.35% |
1.60% |
2.35% |
1.40% |
1.65% |
2.40% |
|
Performance Program, CNP |
1.30% |
1.55% |
2.30% |
1.35% |
1.60% |
2.35% |
|
Recurring Programs |
1.20% |
1.48% |
1.90% |
1.25% |
1.53% |
1.95% |
EMV® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMVCo, LLC.
Effective Date: April 11, 2022
Description: Mastercard is introducing the Decline Reason Code Service and a corresponding fee for decline reason codes to help merchants identify card-not-present (CNP) transactions that should not be re-attempted.
Impact: The Decline Reason Code Service Fee will apply to merchants who process CNP Mastercard transactions.
Application: A fee of $0.02 USD will apply to eligible CNP transactions for the Decline Reason Code Service each time you receive response code 421 (Card Declined Do Not Retry) or 416 (Declined Use Updated Card). Please see our Compliance Notices page for the February 2022-New Decline Codes.
Should your development or IT support team need to update the response codes in your technical environment, please see the new updated response code table on our Developer Portal for further details.
Effective Date: April 1, 2022
Description: Visa will introduce a new per-transaction, non-compliance assessment fee for attempts to authorize a transaction that has previously received a Category 1 decline message.
Impact: The Visa Category 1 Decline Fee will apply to merchants who re-attempt Visa transactions.
Application: The Category 1 Decline Fee will be applied at $0.10 USD for domestic transactions and $0.15 USD for cross-border transactions each time you reattempt an authorization after receiving decline response code 421 (Card Declined Do Not Retry). Please see our Compliance Notices page for the February 2022-New Decline Codes.
Should your development or IT support team need to update the response codes in your technical environment, please see the new updated response code table on our Developer Portal for further details.
Effective Date: April 1, 2022
Description: Visa will introduce a new BASE II Return Fee, which will be assessed on force posted transactions (processing without authorization) where the cardholder account was found to be compromised. Merchants are always required to seek an authorization for processing a transaction.
Impact: The BASE II Return Fee will apply only to merchants who process unauthorized Visa transactions.
Application: The BASE II Return fee will be applied at $5.00 (USD) per return.
Effective Date: April 1, 2022
Description: Visa will introduce an Address Verification Service (AVS) fee. The AVS enables merchants to verify a cardholder’s billing address with their issuing bank for card-not-present transactions.
Impact: The new AVS fee is applied on a per-transaction basis when the address verification yields a usable result match, including full match, partial match (street address or zip/post-code) or no match. The AVS fee will not be charged when the address is not verified, or an error condition prevents the result from being returned to the acquirer.
Application: The AVS fee will be applied at $0.001 (USD) per usable AVS result received.
Effective Date: April 1, 2022
Description: The Interac Switch (Assessment/Card Brand) fee for Interac Debit card present transactions will increase.
Impact: This fee will apply to all Interac Debit card present transactions.
Application: This fee will increase from $0.008998 to $0.009450 per transaction.
|
Interac Fee Name |
Current Fee |
New Fee |
Difference |
|
Interac Assessment/Card Brand Fee |
$0.008998 |
$0.009450 |
$0.000452 |
Effective Date: November 1, 2021
Description: Merchants categorized in Transportation – Suburban and Local Commuter Passenger (MCC 4111) will qualify for Tier 1 Low-ticket merchant pricing.
Impact: This update will apply to merchants in the above specified MCCs who accept Interac Flash transactions.
Application: This update will result in an interchange reduction from $0.035 to $0.020 (-$0.015) for qualifying Interac Flash transactions.
|
Tiers |
Flat-fee per transaction |
Criteria for merchant qualification |
|
Tier 1 |
$0.020 |
Merchants in segments with an average Interac Debit transaction size below $20.
Qualifying segments are
|
|
Tier 2 |
$0.025 |
Merchants that meet a minimum annual transaction volume threshold.
The transaction volume threshold is 20 million Interac Flash transactions, based on transaction volume in the previous calendar year. |
|
Tier 3 |
$0.035 |
Base interchange rate that applies to all other merchants. |
* Effective November 1, 2021
Effective Date: October 17, 2021
Description: Visa is introducing the Visa Stop Payment Service (VSPS) to replace the Pre-Authorized Payment Cancellation Service in Canada. As part of the VSPS, Visa is introducing the Repeat Authorization Decline Fee. This fee will be applied at $1.00 USD (which will be converted to Canadian dollars by Moneris if applicable) to each declined transaction, should merchants continue processing a card after three previous declines from the same stop instruction.
These fees are avoidable and are being introduced with VSPS to help protect cardholders against payments that may no longer be authorized and to help safeguard the overall integrity of the payment system.
Impact: This fee will apply to the merchant following three previous declines by the same stop instruction.
Application: The Repeat Authorization Decline Fee for the Visa Stop Payment Service will be applied as follows:
|
Fee Description |
Frequency |
Fee |
|
Repeat Authorization Decline Fee |
Per transaction (following three previous declines by the same stop instruction) |
$1.00 USD* |
* Converted to Canadian dollars by Moneris if applicable.
Effective Date: October 16, 2021
Description: Visa will implement rate reductions to their Everyday Needs and Grocery & Food Retail interchange programs.
Impact: These modifications will reduce interchange for eligible merchants within the applicable MCCs below.
Application: The new interchange rates for each program/card type and applicable MCCs are as follows:
| Interchange Program |
Visa Core Products | Visa Infinite Products1 | ||||
|
Current |
New |
Difference |
Current |
New |
Difference |
|
|
Everyday Needs |
1.20% |
1.10% |
-0.10% |
1.30% |
1.20% |
-0.10% |
|
Grocery & Food Retail |
1.00% |
0.95% |
-0.05% |
1.20% |
1.15% |
-0.05% |
1 Visa Infinite Privilege products are not impacted by these modifications.
The applicable MCCs are as follows:
| Everyday Needs | |
|
MCC |
MCC Description |
|
MCC 4121 |
Taxicabs/Limousines |
|
MCC 5192 |
Books/Periodicals/Newspapers |
|
MCC 5331 |
Variety Stores |
|
MCC 5697 |
Tailors, Seamstresses, Mending, and Alterations |
|
MCC 5811 |
Caterers |
|
MCC 5812 |
Restaurants |
|
MCC 5814 |
Fast Food Restaurants |
|
MCC 5912 |
Drug Stores & Pharmacies |
|
MCC 5942 |
Book Stores |
|
MCC 5994 |
News Dealers/Newsstands |
|
MCC 7210 |
Laundry, Cleaning, and Garment Services |
|
MCC 7211 |
Laundries-Family/Commercial |
|
MCC 7216 |
Dry Cleaners |
|
MCC 7230 |
Beauty/Barber Shops |
|
MCC 7251 |
Shoe Repair Shops, Shoe Shine Parlors, and Hat Cleaning Shops |
|
MCC 7298 |
Health & Beauty Spas |
|
MCC 7542 |
Car Washes |
| Grocery Food & Retail | |
|
MCC |
MCC Description |
|
MCC 5411 |
Grocery Stores and Supermarkets |
|
MCC 5422 |
Freezer and Locker Meat Provisioners |
|
MCC 5441 |
Candy, Nut and Confectionery Stores |
|
MCC 5451 |
Dairy Product Stores |
|
MCC 5462 |
Bakeries |
Effective Date: April 22, 2022 (originally scheduled for October 1, 2021)
Description: Mastercard will introduce changes to their interregional interchange program. As a result, certain Consumer Interregional Interchange Programs will be introduced and others retired.
Impact: These changes will impact merchants who process Mastercard transactions.
Application: The new interregional interchange programs and retired interregional interchange programs are as follows:
New Consumer Interregional Interchange Programs:
|
Description |
Core |
Premium |
Super Premium |
Refund Interchange |
|
Interregional Consumer Rate I — Digital Commerce |
1.60% |
1.85% |
1.98% |
1.00% |
|
Interregional Consumer Rate II — Card Present |
1.10% |
1.85% |
1.98% |
1.00% |
|
Interregional Consumer Rate III — Base |
1.60% |
1.85% |
1.98% |
1.00% |
Consumer Interregional Interchange Programs to be retired:
|
Consumer |
Core |
Premium |
Super Premium |
Refund Interchange |
|
Standard |
1.60% |
1.85% |
1.98% |
1.00% |
|
Electronic |
1.10% |
1.85% |
1.98% |
1.00% |
Effective Date: Delayed until further notice (originally scheduled for October 1, 2021)
Description: Visa will introduce a fee applied to all Card-Not-Present (CNP) transactions manually key-entered (POS Entry Mode 01) with no Electronic Commerce Indicator (ECI). This fee will not apply to correctly flagged CNP transactions. For domestic and foreign transactions, the fee will be applied at $0.15 USD (which will be converted to Canadian dollars by Moneris if applicable).
Impact: This fee is avoidable, as it will only impact merchants who key-enter CNP transactions as POS 01 with no ECI.
Effective Date: Delayed until further notice (originally scheduled for October 1, 2021)
Description: Visa will introduce a non-compliance assessment that will apply when a merchant resubmits an authorization with changed data elements following a decline.
Impact: This fee will impact merchants who process foreign and domestic Visa transactions.
Effective Date: August 2, 2021 (Mastercard transactions submitted for clearing and settlement on and after July 31, 2021 will also be subject to the new interchange rates).
Description: Mastercard will be reducing rates for the Merit 3 - Digital Commerce and the Consumer Credit Standard domestic interchange programs.
Impact: This update will impact merchants who process domestic Mastercard transactions.
Application: The updated interchange rates for each program/card type are as follows:
| Interchange Program Type | Core | World | World Elite | Muse Mastercard | ||||||||
|
Current |
New |
Difference |
Current |
New |
Difference |
Current |
New |
Difference |
Current |
New |
Difference |
|
|
Merit 3 - Digital Commerce |
1.76% | 1.67% | -0.09% | 2.00% | 1.90% | -0.10% | 2.24% | 2.13% | -0.11% | 2.39% | 2.25% | -0.14% |
|
Consumer Credit Standard |
2.06% | 1.96% | -0.10% | 2.30% | 2.19% | -0.11% | 2.54% | 2.42% | -0.12% | 2.69% | 2.54% | -0.15% |
Effective Date: July 16, 2021
Description: American Express is introducing a new program for foreign issued debit cards.
Impact: This wholesale discount rate will apply to applicable foreign American Express debit transactions.
Application: The wholesale discount rates for each industry category are as follows:
| Industry Category | Foreign-issued Debit Card Wholesale Discount Rate |
|
B2B/Wholesale |
1.28% |
|
Healthcare |
|
|
Mail Order and Internet |
|
|
Restaurants |
|
|
Retail |
|
|
Services and Professional Services |
|
|
Travel and Entertainment |
|
|
Other |
Effective Date: July 7, 2021
Description: Effective January 29, 2021 Interac revised their rules to increase the Interac Flash contactless per transaction limit from $100 to $250. Issuers may optionally support Interac Flash contactless transactions up to $250 for their cardholders. As a reminder, under Interac rules, merchants are not permitted to set a per transaction limit on terminals.
Impact: The Interac Flash interchange fees currently apply to Interac contactless transactions up to $100. Effective July 7, 2021 the interchange fees will apply to all Interac contactless transactions up to $250 based each merchant’s existing tier pricing qualification.
Application: The interchange rates for each tier are as follows:
| Tiers | Flat-fee per transaction | Criteria for each merchant qualification | |
|
Interac Flash Transactions |
Tier 1 Low-ticket Merchants |
$0.020 |
Merchants in segments with an average Interac Debit transaction size below $20. Qualifying segments include:
|
|
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 |
Base interchange rate that applies to all other merchants. |
Effective Date: June 1, 2021
Description: Mastercard’s Global Wholesale Travel Transaction Program (B2B) assessment fee will now also apply to domestic wholesale travel transactions that are initiated with virtual Mastercard account numbers.
Impact: This assessment fee will apply to the applicable Merchant Category Codes (MCCs) listed below, should they accept and process a domestic wholesale travel transaction initiated with a virtual Mastercard.
Application: The assessment fees for the Global Wholesale Travel Transaction Program (B2B) are as follows:
|
B2B Program ID |
Current Rate |
Rates |
|
Domestic |
N/A |
0.60% |
|
International |
0.60% |
No change |
|
International (USD Settlement) |
0.60% |
No change |
The applicable MCCs are as follows:
|
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 |
Effective Date: April 16, 2021
Description: Discover is revising domestic interchange rates and fees for Debit, Prepaid, and Credit Card Products.
Impact: This update will impact merchants who process domestic Discover transactions.
Application: The new interchange rates for each program/card type are as follows:
| Acquirer Interchange Program |
Debit and Prepaid Card Products | |||||
| Debit | Prepaid | |||||
|
Current |
New |
Difference |
Current |
New |
Difference |
|
|
CPSL - Recurring Payments |
1.15% |
0.45% |
-0.70% |
1.37% |
1.40% |
0.03% |
|
CPSL - Supermarket/Warehouse Clubs |
1.15% |
0.35% |
-0.80% |
1.32% |
1.43% |
0.11% |
|
CPSL - Petroleum |
1.15% |
0.35% |
-0.80% |
1.18% |
1.20% |
0.02% |
|
CPSL - Retail |
1.15% |
0.45% |
-0.70% |
1.45% |
1.43% |
-0.02% |
|
Base Submission Level |
1.15% |
1.15% |
0.00% |
1.58% |
1.55% |
-0.03% |
| Acquirer Interchange Program |
Consumer Credit Card Products | ||||||||
| Core/Rewards | Premium | Premium Plus | |||||||
|
Current |
New |
Difference |
Current |
New |
Difference |
Current |
New |
Difference |
|
|
CPSL - Recurring Payments |
1.37% |
1.15% |
-0.22% |
1.56% |
1.30% |
-0.26% |
1.96% |
1.70% |
-0.26% |
|
CPSL - Supermarket/Warehouse Clubs |
1.32% |
1.00% |
-0.32% |
1.45% |
1.22% |
-0.23% |
1.96% |
1.64% |
-0.32% |
|
CPSL - Petroleum |
1.18% |
1.00% |
-0.18% |
1.35% |
1.25% |
-0.10% |
1.96% |
1.64% |
-0.32% |
|
CPSL - Retail |
1.45% |
1.15% |
-0.30% |
1.60% |
1.30% |
-0.30% |
2.05% |
1.75% |
-0.30% |
|
Base Submission Level |
1.58% |
1.55% |
-0.03% |
1.85% |
1.82% |
-0.03% |
2.49% |
2.35% |
-0.14% |
Effective Date: April 16, 2021
Description: Visa is introducing six new product codes (card types) with different interchange rates for the existing Visa B2B Virtual Payments Product for Travel Spend Program.
Impact: This update will impact merchants who accept wholesale travel transactions that are initiated with virtual Visa account numbers under the Visa B2B Virtual Payments Product for Travel Spend Program. Visa transactions within the new card types are subject to the new interchange rates.
Application: The new interchange rates for each product code/card type are as follows:
|
B2B Program ID |
B2B Program ID Description |
Rates |
|
A1 |
B2B Program 1 |
0.80% |
|
A2 |
B2B Program 2 |
1.00% |
|
A3 |
B2B Program 3 |
1.20% |
|
A4 |
B2B Program 4 |
1.40% |
|
A5 |
B2B Program 5 |
1.60% |
|
A6 |
B2B Program 6 |
1.80% |
This program is limited to the following card acceptor business codes (MCCs):
|
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 |
Effective Date: April 1, 2021
Description: Visa will introduce an “Excess Reattempted Transactions” Fee for the 16th and each subsequent authorization reattempt following a declined transaction within a 30-day period. The fee will continue to apply until an approved transaction is processed, at which point the fee will reset. For domestic transactions, the fee for each reattempt will be $0.10 USD (which will be converted to Canadian dollars by Moneris if applicable). For foreign transactions, the fee for each reattempt will be $0.15 USD (which will be converted to Canadian dollars by Moneris if applicable).
Impact: This fee will impact merchants who process foreign and domestic Visa transactions.
Effective Date: April 1, 2021
Description: The Interac Switch (Assessment/Card Brand) fee for Interac Debit card present transactions will increase.
Impact: This fee will apply to all Interac Debit card present transactions.
Application: This fee will increase from $0.008500 to $0.008998 per transaction.
|
Interac Fee Name |
Current Fee |
New Fee |
Difference |
|
Interac Assessment/Card Brand Fee |
$0.008500 |
$0.008998 |
$0.000498 |
Effective Date: April 17, 2021 (Visa transactions submitted for clearing and settlement on April 16, 2021 will also be subject to the new fee)
Description: Visa will increase their Foreign Assessment Fees.
Impact: The new fees will apply to all foreign transactions processed on a Visa card.
Application:
|
Type of Transaction |
Current Rate |
New Rate |
Difference |
|
Multi-currency |
0.40% |
0.60% |
0.20% |
|
Single-currency (card present) |
0.80% |
1.00% |
0.20% |
|
Single-currency (card not present) |
0.85% |
1.00% |
0.15% |
Effective Date: November 1, 2020
Description: Merchants categorized in Limousines and Taxicabs (MCC 4121) and News Dealers and Newsstands (MCC 5994) will qualify for Tier 1 Low-ticket merchant pricing.
Impact: This update will apply to merchants in the above specified MCCs who accept Interac Flash transactions.
Application: This update will result in an interchange reduction from $0.035 to $0.020 (-$0.015) for qualifying Interac Flash transactions.
|
Tiers |
Flat-fee per transaction |
Criteria for merchant qualification |
|
Tier 1 |
$0.020 |
Merchants in segments with an average Interac Debit transaction size below $20.
Qualifying segments are
|
|
Tier 2 |
$0.025 |
Merchants that meet a minimum annual transaction volume threshold.
The transaction volume threshold is 20 million Interac Flash transactions, based on transaction volume in the previous calendar year. |
|
Tier 3 |
$0.035 |
Base interchange rate that applies to all other merchants. |
Effective Date: October 16, 2020
Description: Mastercard is introducing five new product codes (card types) with different interchange rates for the existing Mastercard Global Wholesale Travel Program.
Impact: This update will impact merchants who accept wholesale travel transactions that are initiated with virtual Mastercard account numbers under the Mastercard Enterprise Solution Wholesale Travel Program.
Application: The new interchange rates for each product code/card type are as follows:
|
Product Code / Card Type |
Current Interchange Rate |
New Interchange Rate (effective Oct 16, 2020) |
Difference |
|
MBS - Mastercard B2B Product 1 (Existing) |
2.00% |
No Change |
N/A |
|
MBA - Mastercard B2B Product 2 (New) |
N/A |
1.80% |
N/A |
|
MBG - Mastercard B2B Product 3 (New) |
N/A |
1.60% |
N/A |
|
MBH - Mastercard B2B Product 4 (New) |
N/A |
1.40% |
N/A |
|
MBI - Mastercard B2B Product 5 (New) |
N/A |
1.20% |
N/A |
|
MBJ - Mastercard B2B Product 6 (New) |
N/A |
1.00% |
N/A |
Effective July 20, 2020, Mastercard’s Digital Commerce Development Fee of 0.02% will no longer apply to ecommerce transactions made on virtual B2B cards that qualify for Mastercard’s Global Wholesale Travel Transaction Program.
The Digital Commerce Development Fee was introduced on May 1, 2018 on all ecommerce transactions except for those that qualify for the Humanitarian and Enterprise Solution Freight Interchange Programs.
The Global Wholesale Travel Transaction Program applies to wholesale travel transactions that are initiated with virtual Mastercard account numbers, and applies only to select Merchant Category Codes (MCCs) listed below:
|
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 |
Effective Date: May 1, 2020 (Mastercard transactions submitted for clearing and settlement on April 30, 2020 will also be subject to the new interchange rates). *Please note*: the implementation date has been delayed to August 1, 2020. For details, refer to the “Interchange 2020: Visa and Mastercard Updates Delayed” section above.
Description: Mastercard will make a significant change to their domestic interchange structure to focus on elements of security and reflect the risk of the transaction. As part of this change, Mastercard will replace the majority of their existing domestic interchange programs with new programs that reflect the degree of risk associated with the type of transaction.
Impact: This update will impact merchants who process domestic Mastercard credit card transactions. Mastercard Debit transactions will remain unchanged.
Application:
Summary of Domestic Interchange Program Changes
|
Remove |
Update |
New |
|
Merchant Volume Tier 1, 2 3 |
Standard |
Merit 1 – Card Present EMV |
|
Supermarket |
Charity |
Merit 2 – Unsecure Card Present |
|
High Volume Supermarket |
Commercial Programs |
Merit 3 – Digital Commerce |
|
Everyday Spend Category |
|
Contactless |
|
Petroleum |
|
3DS |
|
Contactless (less than or = $25 CAD) |
|
Card Present Refund (Merit 1 & 2) |
|
Electronic |
|
Card Not Present Refund (Merit 3 & Standard) |
|
Recurring |
|
|
|
SecureCode-enabled |
|
|
|
Masterpass |
|
|
|
Emerging Sectors |
|
|
|
Public Sector |
|
|
Current Domestic Consumer Interchange Rates
The current Mastercard domestic consumer interchange rates can be found here.
New Domestic Consumer Credit Interchange Rates
Card Present Transactions
|
Program Name |
Type of Transaction |
Core |
World |
World Elite |
Muse* |
|
Contactless |
Tap |
0.87% |
1.16% |
1.48% |
1.57% |
|
Merit 1 – Card Present EMV |
Chip |
0.92% |
1.22% |
1.56% |
1.65% |
|
Merit 2 – Unsecure Card Present |
Mag Swipe & Late Presentment |
1.22% |
1.52% |
1.86% |
1.95% |
Card Not Present Transactions
|
Program Name |
Type of Transaction |
Core |
World |
World Elite |
Muse* |
|
3DS |
3DS |
1.50% |
1.70% |
1.90% |
2.03% |
|
Merit 3 – Digital Commerce |
Digital |
1.76% |
2.00% |
2.24% |
2.39% |
|
Standard |
Keyed-In |
2.06% |
2.30% |
2.54% |
2.69% |
Refund Transactions:
The programs below will receive lower interchange rates for refund transactions.
|
Program Name |
Type of Transaction |
Core |
World |
World Elite |
Muse* |
|
Card Present Refund (Merit 1 & 2) |
Mag Swipe & Late Presentment & Chip |
0.55% |
0.73% |
0.94% |
0.99% |
|
Card Not Present Refund (Standard & Merit 3) |
Keyed-In & Digital & Standard |
1.06% |
1.20% |
1.34% |
1.43% |
Please note Moneris will begin sending return/refund transactions to card issuers for authorization to comply with a new mandate. As a result, Mastercard return transactions sent for authorization may result in a greater proportion of the interchange rate returned at the time of settlement. For more details, visit Moneris.com/Compliance.
Updates to Charity Program Domestic Interchange Rates
|
Card Type |
Current |
New |
Difference |
|
Core |
1.00% |
0.92% |
-0.08% |
|
World |
1.25% |
1.22% |
-0.03% |
|
World Elite |
1.50% |
1.56% |
0.06% |
|
Muse* |
N/A |
1.65% |
- |
Updates to the Commercial Programs
The existing Commercial Programs will:
*Mastercard Muse is a new premium card product that targets high-net-worth individuals and very high spending consumers. It will launch in Canada in August 2020.
Effective Date: April 18, 2020 (Visa transactions submitted for clearing and settlement on April 17, 2020 will also be subject to the new interchange rates). *Please note*: the implementation date has been delayed to July 18, 2020. For details, refer to the “Interchange 2020: Visa and Mastercard Updates Delayed” section above.
Description: Visa will make updates to some of their existing domestic interchange programs and reducing select domestic consumer credit interchange rates.
Impact: This update will impact merchants who process domestic Visa transactions.
Application:
Summary of Domestic Interchange Program Changes
|
Remove |
Update |
New |
|
Performance Fee Program Tier 2 |
Emerging Segment Fee Program |
Utilities Fee Program |
|
|
Performance Fee Program Tier 1 (to be renamed to “Performance Program – Card Present”) |
Emerging Segment Preferred Fee Program |
|
|
|
Performance Program – Card Not Present |
New Domestic Consumer Credit Interchange Rates
|
Rate Program |
Consumer |
||
|
|
Current |
New |
Difference |
|
Standard |
1.52% |
1.45% |
-0.07% |
|
Electronic |
1.42% |
1.25% |
-0.17% |
|
Card Not Present |
1.52% |
1.40% |
-0.12% |
|
Industry Program - Gas |
1.18% |
1.07% |
-0.11% |
|
Industry Program - Grocery |
1.23% |
1.00% |
-0.23% |
|
Industry Program - Everyday Needs |
1.36% |
1.20% |
-0.16% |
|
Recurring Payments |
1.37% |
1.25% |
-0.12% |
|
Emerging Segments |
0.98% |
0.98% |
0.00% |
|
Performance Program - Card Present |
1.32% |
1.20% |
-0.12% |
|
Performance Program - Card Not Present |
N/A |
1.35% |
- |
|
Industry Program - Utilities* |
N/A |
$0.75 CAD |
- |
|
Emerging Segments - Preferred* |
N/A |
0.80% |
- |
|
Rate Program |
Infinite |
||
|
|
Current |
New |
Difference |
|
Standard |
1.71% |
1.70% |
-0.01% |
|
Electronic |
1.61% |
1.57% |
-0.04% |
|
Card Not Present |
1.71% |
1.65% |
-0.06% |
|
Industry Program - Gas |
1.37% |
1.34% |
-0.03% |
|
Industry Program - Grocery |
1.42% |
1.20% |
-0.22% |
|
Industry Program - Everyday Needs |
1.54% |
1.30% |
-0.24% |
|
Recurring Payments |
1.56% |
1.53% |
-0.03% |
|
Emerging Segments |
1.17% |
1.17% |
0.00% |
|
Performance Program - Card Present |
1.52% |
1.49% |
-0.03% |
|
Performance Program - Card Not Present |
N/A |
1.60% |
- |
|
Industry Program - Utilities* |
N/A |
$0.75 CAD |
- |
|
Emerging Segments - Preferred* |
N/A |
1.00% |
- |
|
Rate Program |
Infinite Privilege |
||
|
|
Current |
New |
Difference |
|
Standard |
2.45% |
2.45% |
0.00% |
|
Electronic |
2.08% |
2.08% |
0.00% |
|
Card Not Present |
2.45% |
2.40% |
-0.05% |
|
Industry Program - Gas |
1.95% |
1.95% |
0.00% |
|
Industry Program - Grocery |
1.95% |
1.95% |
0.00% |
|
Industry Program - Everyday Needs |
1.95% |
1.95% |
0.00% |
|
Recurring Payments |
1.95% |
1.95% |
0.00% |
|
Emerging Segments |
1.95% |
1.95% |
0.00% |
|
Performance Program - Card Present |
1.95% |
1.95% |
0.00% |
|
Performance Program - Card Not Present |
N/A |
2.35% |
- |
|
Industry Program - Utilities* |
N/A |
$0.75 CAD |
- |
|
Emerging Segments - Preferred* |
N/A |
1.95% |
- |
*Qualification is based on your MCC, ticket size and the convenience/service fee charged per transaction. You may qualify for these programs if you meet the criteria below:
Eligible Emerging Segments and Transaction Amounts
|
Transaction Amount |
MCC |
Description |
|
Any |
4900 |
Utilities – Electric, Gas, Water, and Sanitary |
|
6513 |
Real Estate Agents and Managers - Rentals |
|
|
8050 |
Nursing and Personal Care Facilities |
|
|
8398 |
Charitable Social Service Organizations |
|
|
8661 |
Religious Organizations |
|
|
9311 |
Tax Payments |
|
|
Equal to or greater than CAD$1,000.00 |
8211 |
Elementary and Secondary Schools |
|
8220 |
Colleges, Universities, Professional Schools, and Junior Colleges |
|
|
8351 |
Child Care Services |
Maximum Convenience/Service Fee Levels
|
Rate Program |
Consumer Credit |
Consumer Debit |
|
Emerging Segments - Preferred |
Up to 1.60% |
Up to CAD$1.00 per transaction (Rent, Tax and Childcare MCCs) Up to CAD$20.00 per transaction (Education and Long-Term Care MCCs) |
|
Industry Program - Utilities |
Up to CAD$2.00 per transaction |
Up to CAD$1.00 per transaction |
If you meet the eligibility criteria for the Emerging Segments – Preferred Program and/or the Industry Program - Utilities, please contact us for review.
If you want more information on the other Visa programs outlined in the table above, refer to this page.
New Domestic Consumer Debit Interchange Rates
The new rate programs below will be assigned Visa Debit interchange rates. Visa Debit interchange rates for existing programs will remain unchanged.
|
Rate Program |
Visa Debit |
|
|
Current |
New |
|
|
Industry Program - Utilities |
N/A |
$0.10 CAD |
|
Emerging Segments - Preferred |
N/A |
$1.00 CAD |
1. What are the interchange updates? What is the difference between Visa changes and Mastercard changes?
Visa and Mastercard announced changes to their domestic interchange programs and rates that will take effect on April 18, 2020 and May 1, 2020 respectively.
2. Why are Visa and Mastercard making these changes?
Visa and Mastercard are making these changes to align with their revised voluntary commitment to the Government of Canada to reach an average effective interchange rate of 1.40% (from 1.50%) on domestic consumer credit transactions. For more information, refer to this page.
3. Does that mean all the Visa and Mastercard interchange rates will be lowered?
Visa and Mastercard are taking different approaches to achieve an average effective interchange rate of 1.40% on domestic consumer credit transactions:
Overall, the changes in rates are specific to your business segment/Merchant Category Code (MCC), transaction volume, method of acceptance and card mix (types of card).
4. Will the rates impact all my transactions?
The interchange rates will vary depending on your MCC, the type of transaction, method of acceptance and card mix (types of card).
5. Will my processing costs increase or decrease?
Visa and Mastercard are introducing the interchange updates to support the Government of Canada in lowering the average effective interchange rate to 1.40% on domestic consumer credit transactions. As a result, you will likely see a reduction in the cost of processing such transactions. However, your overall processing costs will still be largely dependent on your MCC, the type of transaction, method of acceptance and card mix (types of card).
6. Can you reduce my interchange rates?
No, Moneris does not set interchange rates. Interchange rates are set and regulated by the card brands and passed through to you by Moneris.
7. If the interchange rates for Visa and Mastercard are decreasing, can Moneris apply the new rates for me now?
No, Moneris does not set interchange rates. Interchange rates are set and regulated by the card brands and passed through to you by Moneris. As set by Visa and Mastercard, the new rates will be implemented in April and May 2020.
8. Is there anything I need to do to get the new rates?
There is no action required from you. You will be able to review the new rates on your statement.
9. Will there be any changes to my statement?
There will be changes to the naming of the fees and the programs in your statement in accordance with the interchange updates. For more details, refer to the official communication that Moneris will send out in early January 2020.
10. What is a card present transaction?
A card present transaction is defined as a contact or contactless transaction where both the card and the cardholder are present.
11. What is a card not present transaction?
A card not present (CNP) transaction is a transaction where the card, the cardholder, and/or the merchant is not present at the time of the transaction. Mail order, telephone order, electronic commerce (ecommerce), and recurring payment transactions are examples of CNP transactions.
Given the evolving impacts of the COVID-19 pandemic, Visa and Mastercard have announced new implementation dates for their April and May 2020 interchange program and rate updates. The new Visa and Mastercard implementation dates are now July 18, 2020 and August 1, 2020, respectively.
Both card brands remain committed to lowering the average effective interchange rate to 1.40% (from 1.50%) on consumer credit transactions. As a result, the Visa and Mastercard interchange and rate changes will continue to be effective on their original effective dates of April 18, 2020 and May 1, 2020 respectively, but through a reconciliation approach.
What does this mean?
Moneris is working with the card brands to determine the details of the reconciliation process, and is committed to keeping you informed of the changes.
For more information about Visa’s response to COVID-19, visit this page. For more information about Mastercard’s response to COVID-19, visit this page.
You can also find the specific interchange program and rate updates in the sections below.
Effective Date: April 1, 2020
Description: The Interac Switch (Assessment/Card Brand) fee for Interac Debit card present transactions will increase.
Impact: This fee will apply to all Interac Debit card present transactions.
Application: This fee will increase from $0.0080 to $0.0085 per transaction.
|
Interac Fee Name |
Current Fee |
New Fee |
Difference |
|
Interac Assessment/ Card Brand Fee |
$0.0080 |
$0.0085 |
$0.0005 |
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:
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:
Taking the following actions may reduce the risk of excessive authorization attempts and help you avoid this fee:
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:
Taking the following actions can help you minimize the risk of triggering this fee:
*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:
|
|
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 |
Current UnionPay Rates For |
UnionPay Rates For |
|
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 |
Visa Foreign |
|
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.
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:
If you have an account that processes payments in US 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:
Below are common examples of Visa multi-currency and single-currency foreign transactions:
If you have an account that processes payments in Canadian Dollars:
If you have an account that processes payments 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 1-844-204-8626.
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 |
|
|
Interac transactions impacted by this update
|
|
Mastercard is introducing a Digital Commerce Development Fee on all Mastercard e-commerce transaction volume.
These changes will go into effect on the following date:
|
Notification Date |
Effective Date |
Fee Details |
|
February 1, 2018 |
May 1, 2018 |
|
What is electronic commerce (ecommerce)?
What is ecommerce transaction?
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 1-844-204-8626.
Mastercard will be adjusting some of the interchange rates for domestic transactions in the Canada region effective November 1, 2017.Â
Â
|
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.Â
Please note: This fee will be charged in the equivalent CAD for accounts settled in Canadian dollars.Â
|
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 |
|
|
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) |