MasterCard

MasterCard Interchange Reimbursement Fees in Canada

As a MasterCard holder, it is necessary for you to have some basic ideas about the economic model and the set of rules that characterize the transactions through online credit card payment. Rates, as well as fees pertaining to MasterCard interchange, have been crucial for the merchant account services. But still, we want the entire process to be as simple as possible because as a MasterCard holder, you are a committed partner as well as important to the collective success of the MasterCard.

What do you Mean by Interchange? 

Interchange is a little charge taken by the cardholder’s account (issuer) from the retailer’s account (acquire) to pay the issuer for the benefits and value which have been imparted in the form of online bill payment solutions. It is the amount received by the issuer while accepting electronic payments. It allows the banks that assign electronic payments to deliver enormous benefits to consumers, governments, and retailers.

Why is it Used by commercial entities or merchants? 

Interchange is utilized to improve the functionality of the bill payments system. It makes the process secured as well as completes the payment as early as possible. It helps to cover the expenses of running card services that banks might contrarily pass onto customers.

It commits to investment to create security and ease when you make payments online as a customer or accept credit card payments online as a merchant. For example, pin, chip, and verified by MasterCard helps to enhance transparency as well as to reduce fraud.

Apart from these, it also helps the investors in maintaining as well as developing the system. It allows organizations like MasterCard to make payments in a more convenient, more secure, as well as faster way. It is a contactless payment system used by several customers and business owners each day to get benefits from their continual investment.

Requirements of Settings an Interchange Charge

The region, which is not entirely regulated by the government, MasterCard sets an interchange charge. This charge depends on the benefits of accepting electronic payments and the value passed by the issuing bank. It is necessary to set an interchange charge at an appropriate level.

If interchange charges are set too expensive, then retailers may decide not to accept MasterCards. Alternatively, if it is fixed at a lower rate, then issuing banks have no reason to cover the hazards of providing this service.

Therefore, setting-up interchange charges at a suitable level are important to assure that both the acquirers as well as issuers provide their services that optimize the potency of the payments system and encourage the growth of advanced payment resolutions.

So, it is necessary to set the rate at a manageable charge. It makes the process simpler for electronic payments to produce ultimate advantage at the most inexpensive cost for both customers and retailers.

In addition, interchange also helps in credit availability for small companies. It can be considered as a key operator for economic organizations when it is set at a manageable level.

MasterCard Consumer Card Interchanges Charges

The below table is a collection of detailed information reported in the Canadian Interchange manual.

 

Fee Tier Mastercard Consumer Credit Mastercard Consumer Debit
PayPass 0.30% 0.20%
MasterPass Wallet 0.30% 0.20%
Chip 0.30% 0.20%
Enhanced Electronic 0.30% 0.20%
Merchant UCAF 0.30% 0.20%
Full UCAF 0.30% 0.20%
Base 0.30% 0.20%
MasterCard Commercial Card Interchanges Charges

The below table is a collection of detailed information reported in the Canadian Interchange manual.

Fee tier Mastercard Electronic Corporate, Mastercard Corporate,  Mastercard Prepaid Commercial, Mastercard Electronic BusinessCard, Mastercard BusinessCard, Mastercard Professional Card,  Mastercard Fleet Card Mastercard Purchasing Card
MasterPass Wallet 1.60% 1.35% 1.35% 1.35%
Chip 1.50% 1.25% 1.25% 1.25%
Enhanced Electronic 1.60% 1.35% 1.35% 1.35%
Merchant UCAF (*) 1.60% 1.35% 1.35% 1.35%
Full UCAF (*) 1.75% 1.50% 1.50% 1.50%
Base 1.90% 1.65% 1.65% 1.65%
Large Ticket Level 1 (**) N.A. N.A. 1.00% + 20.00 € 1.00% + 20.00 €
Large Ticket Level 2 (***) N.A. N.A. 0.75% + 45.00 € 0.75% + 45.00 €
Incentive (****) -0.30% -0.30% -0.30% -0.50€

The below table is the collection of the rate requirements for each of the interchange tiers:

 

Mastercard Interchange tiers Transaction type Card Terminal PIN verification (face-to-face) SecureCode (e-commerce) Transaction amt limit Timeliness (*)
MasterPass Wallet
PayPass Face-to-face Contactless M/Chip Contactless N.A. N.A. <= 25 € <= 4 days
Chip Face-to-face No EMV No N.A. No <= 4 days
Enhanced Electronic Face-to-face No Magstripe No N.A. No <= 4 days
Merchant UCAF E-commerce No N.A. N.A. Merchant No <= 4 days
Full UCAF E-commerce No N.A. N.A. Issuer & Merchant No <= 4 days
Base All No No No N.A. No N.A.
Large Ticket Level 1 All No No No N.A. >3,000 € <= 4 days
Large Ticket Level 2 All No No No N.A. >10,000 € <= 4 days

In the above discussion, we have provided detailed information about the MasterCard interchange reimbursement fees in Canada. We hope to bring you valuable information that will help you use the MasterCard in a hassle-free manner and if you want to get the best deals on the interchange reimbursement fees get in touch with International Payment Solutions for the best results.

With an MBA Dual Specialization in Finance and Marketing, this is Debanjan Mukherjee from India. I have got more than 7 years of experience in the field of content development and have extensive working experience in top corporate houses like Pwc and Zacks Investment Research. My skill set includes SEO Writing, Content Writing, Blog Writing, Web Content & Research Articles. I believe in taking things to the next level.