New interchange rates to help more than 700,000 merchants across Canada
TORONTO, Nov. 4, 2014 /CNW/ - MasterCard Canada announced today it will reduce interchange rates for consumer credit cards across its categories after consultation and discussion with key merchant and consumer groups.
MasterCard is reducing the average net effective interchange rate to 1.5%. This rate reduction will mean lower acceptance costs for all MasterCard accepting Canadian retailers while maintaining the important benefits to consumers and merchants. The rate changes will be in effect for 5 years.
"We continue to maintain the balance for all our stakeholders in the payments industry. We brought forward a voluntary solution that avoids the unintended consequences of regulation as we have seen in other countries," said Betty DeVita, President, MasterCard Canada. "Our focus is on sustaining the right environment to deliver safe, secure and convenient payment innovations like mobile and contactless while increasing the value of electronic payments for merchants and consumers."
As part of this change, MasterCard will reduce interchange rates for specific categories and create new categories targeted at small merchants, such as:
- Reduced rate for independent petroleum merchants
- Reduced rate for independent grocery merchants
- A new independent business rate in everyday spend categories such as:
- Convenience Stores
- Hardware Stores
- Drug Stores
- Dry Cleaning
- A new Charity rate; first payment network to do so in Canada
While MasterCard sets interchange rates in order to maximize the value and benefits that payment system participants – including cardholders and merchants – receive from the MasterCard network, it does not collect any revenue from it.
MasterCard remains committed to the Code of Conduct for the Credit and Debit Industry. MasterCard continues to work closely with key stakeholders as part of FinPay, Finance Canada's Payments Consultative Committee, to bring greater transparency and openness to the payments industry and secure Canada's leadership position in adopting innovative payment solutions.
MasterCard (NYSE: MA), www.mastercard.com, is a global payments and technology company. It operates the world's fastest payments processing network, connecting consumers, financial institutions, merchants, governments and merchants in more than 210 countries and territories. MasterCard's products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardCAnws, join the discussion on the Cashless Conversations Blog and subscribe for the latest news.
SOURCE: MasterCard Canada
For further information: Serda Evren, VP, Communications & Philanthropy, [email protected], 416-365-6671