{"id":8822,"date":"2026-05-19T10:14:39","date_gmt":"2026-05-19T14:14:39","guid":{"rendered":"https:\/\/geasypay.com\/understanding-interchange-fees-in-canada-what-every-merchant-should-know\/"},"modified":"2026-05-19T10:23:00","modified_gmt":"2026-05-19T14:23:00","slug":"understanding-interchange-fees-in-canada-what-every-merchant-should-know","status":"publish","type":"post","link":"https:\/\/geasypay.com\/en\/understanding-interchange-fees-in-canada-what-every-merchant-should-know\/","title":{"rendered":"Understanding interchange fees in Canada"},"content":{"rendered":"

You look at your monthly statement from your payment processor. You see “Interchange fee: $2,847.30”. And you’re wondering exactly what this line means, who this money goes to, and most importantly, why the amount changes from month to month when your sales are stable. <\/strong><\/p>\n

You’re not alone. According to Canadian merchant associations, more than 7 out of 10 small business owners don’t know exactly what they’re paying in interchange fees, or why these fees vary depending on the card presented. Yet for a business that processes $500,000 in card payments per year, a 0.3% difference in interchange represents $1,500 in net margin lost or gained. That’s one part-time employee for 3 months. <\/p>\n

This guide completely demystifies interchange fees in Canada in 2026: who sets them, how they’re calculated, why they vary from transaction to transaction, and most importantly, how they fit into the total bill you pay each month.<\/p>\n

What is interchange and why does it exist?<\/h2>\n

Interchange<\/strong><\/a> is a fee that an acquirer (the merchant’s processor, such as Global Payments) pays to the customer’s card-issuing bank<\/strong> for each card transaction. It is the largest component of credit and debit card fees in Canada. <\/p>\n

Interchange exists for a simple reason. The bank that issued the card to the consumer assumes significant costs and risks. It finances the rewards program (points, cashback, air miles), it covers fraud if someone uses the stolen card, it manages customer service, it advances funds until the customer pays his bill. To compensate, it takes a percentage of each transaction made with the card. <\/p>\n

Three key points to remember:<\/strong><\/p>\n

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  1. Interchange is not a margin taken by your processor<\/strong>. It’s an amount that your processor passes on to the customer’s bank. If your processor charges 2.5% and interchange represents 1.8%, it only earns 0.7% before its own costs. <\/li>\n
  2. Interchange rates are publicly available<\/strong>. In Canada, Visa and Mastercard publish their rate schedules on their respective websites. Anyone can consult them. No processor can negotiate interchange: only the markup is negotiable. <\/li>\n
  3. Interchange varies depending on the card, the business and the context of the transaction<\/strong>. A Visa Infinite Privilege card costs much more in interchange than an Interac debit card, because it finances premium rewards. <\/li>\n<\/ol>\n

    Who gets what when a customer pays $100 by credit card?<\/h2>\n

    Here’s a typical breakdown of a $100 standard Visa credit card transaction in Canada in 2026, with a physical retailer accepting the card in person via chip and PIN.<\/p>\n

    The merchant receives approximately $97.50, i.e. a total charge of $2.50.<\/strong><\/p>\n

    Here’s how that $2.50 breaks down:<\/p>\n