Interac vs credit-card fees, explained
In Canada, debit and credit aren't just different cards — they're priced on completely different systems. Understanding the gap is one of the easiest ways to stop overpaying.
Two different systems
Credit cards (Visa, Mastercard, Amex) are priced as a percentage of the sale, because their fees are built on interchange — a cut that flows to the cardholder’s bank and rises with the ticket size and card type (premium and rewards cards cost more).
Interac — Canadian debit — works differently. It’s domestic, and for card-present transactions it’s typically priced as a small flat fee (a few cents), not a percentage. On a $90 sale, a percentage credit rate might cost well over a dollar; Interac might cost a nickel. That gap is the whole point.
Why blended pricing hides the win
Many processors quote one “blended” rate that applies the same percentage to every tap — credit and debit alike. That’s great for the processor and bad for you: every Interac transaction that should have cost a few cents is now charged a percentage, and the savings that debit is supposed to give you disappears into the blend.
In a lot of Ontario businesses — cafés, convenience, quick-serve — debit is a huge share of transactions. Blending it away is often the single most expensive thing on the account.
What to look for
On your statement, find whether Interac is billed as its own flat-fee line or folded into a percentage. If you can’t tell, that’s usually a sign it’s blended. Ask your processor directly: “What do I pay per Interac transaction, specifically?” A straight answer in cents is a good sign; a shrug toward the blended rate is not.
A note on debit routing
When a customer taps a Visa Debit or Debit Mastercard, the transaction can sometimes route over the credit networks (as a percentage) instead of Interac (flat). Good setups prefer the cheaper Interac rail where possible. It’s worth confirming your terminal and processor route debit the cheap way.
The bottom line
Credit is a percentage; Interac is usually pennies. If you’re paying a percentage on debit, you’re leaving money on the counter every day. Surge prices Interac as Interac — see pricing, or read how to lower your processing fees.
This guide is general information, not financial or legal advice. Card network rules and rates change — confirm the current details before acting.