MERCHANT INTERCHANGE AND ASSESSMENT FEES
Both MasterCard and Visa publish the interchange rates for various card types accepted. The rates vary based on the card presented. Other factors that affect the rates are type of card i.e. domestic or international, commercial or prepaid cards.
As a merchant you need to speak to your acquirer or card acceptance provider (i.e. Moneris, Global Payments, First Data, etc.) as they will have other fees in their card acceptance agreements.
Acquirer Role: Financial institutions that provide card acceptance services to merchants are typically referred to as “acquirers.” Mastercard and Visa have no involvement in acquirer and merchant pricing policies or agreements. Interchange fees are one component of the Merchant Discount Rate (MDR) established by acquirers, which is paid by merchants to acquirers in consideration for card acceptance services.
Interchange Rates
For more information and the rate tables visit:
Merchant Credit Card Surcharge
Since October 6, 2022, businesses in Canada are permitted to pass along interchange fees they pay to settle credit cards with Visa and MasterCard. These are the fees you are charged to process merchant credit card transactions.
Businesses are permitted to recoup this lost interchange revenue by surcharging customers up to 2.4% on credit card transactions.
Several BCLCA members have informed the office that they have implemented the 2.4% surcharge to customers and received little negative push back.
However, their advice is to be sure to educate your customers and be clear that the surcharge is only for credit card transactions, and that customers can avoid the additional fee by using debit or cash.
Credit Card Services
BCLCA has an endorsed merchant credit card program with First Data / Fiserv who offer a range of credit and debit card solutions – for a quote contact Paresh Karkhanis at 647-492-8895 or email Paresh.Karkhanis@fiserv.com