Competition Bureau monitoring Interac's commitment on e-transfer pricing

Changes will help smaller banks compete by levelling the playing field in the financial services sector

GATINEAU, QC, July 10, 2025 /CNW/ - The Competition Bureau is monitoring Interac's commitment to change its wholesale e-transfer pricing structure from volume-based to a flat-fee, which is set to take place on November 1, 2025. Interac charges banks, credit unions and other financial institutions a wholesale fee for each e-transfer that their customers make.

Interac's current tiered, volume-based pricing provides significant discounts to financial institutions that process large volumes of e-transfers. This benefits Canada's largest banks who process hundreds of millions of
e-transfers each year but burdens smaller financial institutions with higher costs because they operate at a much lower volume.

Flat-fee pricing for e-transfers, where financial institutions of all sizes pay the same rate, will help level the playing field. This will support more competition and innovation in Canada's financial services sector. More competition will allow Canadians to benefit from greater choice, lower prices and better service.

The Bureau will continue to monitor Interac's e-transfer pricing and business practices to ensure they comply with the Competition Act. Businesses that have a dominant position in the market must not misuse their market power to create an unfair competitive advantage and hurt competition.

The Bureau urges Canadians to use the online complaint form to report any potential anti-competitive behaviour related to Interac's commitment or its conduct in the marketplace.

Quick facts

• In October 2024, the Bureau began looking into Interac's conduct related to e-transfers following concerns raised by the House of Commons Standing Committee on Industry and Technology (INDU).
• On November 25, 2024, Commissioner of Competition, Matthew Boswell, provided opening remarks at an INDU committee meeting where Interac's business practices were discussed.
• An e-transfer is a digital alternative to cheques or cash, allowing an individual or entity to send, request, and receive money between bank accounts.
• Interac charges financial institutions a fee for each e-transfer transaction. It does not charge
  e-transfer fees directly to consumers. For more information about Interac's e-transfer pricing structure visit its website.
• E-transfer fees charged to customers are at the discretion of the financial institution. They can be included as part of the customer's banking package.
• Taken on their own, volume-based discounts are not necessarily a concern in the marketplace because customers may benefit from the discounts. However, any pricing mechanism used by a dominant player that can harm competition is a concern under the Competition Act.

Associated links

• Opening statement to the House of Commons Standing Committee on Industry and Technology: Credit card practices and regulations in Canada
• Competition Bureau participation in the House of Commons Standing Committee on Industry and Technology: Credit card practices and regulations in Canada on November 25, 2024
• Competition Bureau provides recommendations to strengthen competition in Canada's financial sector
• Abuse of dominance
• Abuse of Dominance Enforcement Guidelines
• Changes to the Provisions on Mergers and Restrictive Trade Practices in the Competition Act

General information:
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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.

SOURCE Competition Bureau

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