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Interac and card fees

By Chris Ste-Marie, Founder of AllProPay · Updated October 24, 2026

Interac is a big part of how you get paid, and a big part of where you might be overpaying without knowing it. Here’s how it works.

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Interac isn’t a credit card, and shouldn’t be priced like one

A customer taps or inserts their bank card and chooses chequing or savings: that’s Interac debit. It’s Canada’s own debit network, and it generally costs a merchant far less to accept than a Visa or Mastercard credit card. Good news, because a large share of transactions are Interac.

The catch: you only benefit from cheaper Interac if your processor prices it separately. Many flat-rate apps charge one rate on everything. Your cheap Interac taps get billed at a credit-card rate, and you quietly overpay on a big chunk of your sales.

The gap is big. Priced as Interac, a tap is a flat fee of about $0.05. Billed at a credit-style rate such as 1.5% plus $0.05, the same $50 tap costs $0.80. Example rates, not a quote.

One $50 Interac tap, two bills: $0.80 billed like a credit card vs $0.05 billed as Interac Two receipts for the same $50 CAD Interac debit tap. Billed like a credit card at 1.5% plus $0.05, the fee is $0.75 plus $0.05, which is $0.80. Billed as Interac, there is no percentage, just one flat fee of about $0.05. A side card shows the gap: $0.80 vs $0.05 on the same tap, 16 times more. Example amounts, illustration, not a quote. ONE $50 INTERAC TAP Same customer, same bank card, same $50. Interac is not a credit card, and should not be priced like one. CREDIT-CARD PRICING Billed like credit A percentage plus a per-tap fee Sale $50.00 CAD Card Interac debit, tapped Billed at 1.5% + $0.05 1.5% of $50 $0.75 Per-tap fee $0.05 FEE ON THIS TAP $0.80 PRICED AS INTERAC Billed as Interac One flat fee per tap Sale $50.00 CAD Card Interac debit, tapped Billed at A flat fee per tap Percentage None Per-tap fee $0.05 FEE ON THIS TAP $0.05 THE GAP On the same tap $0.80 vs $0.05 Billed like credit $0.80 Billed as Interac $0.05 16 times more when a debit tap is billed like a credit card. The more debit-heavy your business, the more it costs you. LEGEND Billed as Interac: one flat fee Debit billed like credit: the avoidable cost Example amounts, illustration, not a quote. Interac fees are set per transaction; your rate depends on your setup.

How card fees are built

  • Interac debit: usually a low, predictable cost per transaction. The cheapest way most of your customers can pay.
  • Visa and Mastercard credit: higher, and it varies by card type. A premium rewards card costs you more than a basic card.
  • The processor markup: what your provider adds on top. The part you can compare and control.

On transparent interchange-plus pricing, you see each of these: Interac priced as Interac, credit as credit, and the markup visible. On a blended flat rate, you see none of it.

What a processing fee is made of: a statement whose left side is a to-scale bar A stylized merchant statement with four fee lines. Down its left side runs a slim bar split to scale, and each fee line sits in a band as tall as its share of the total. Interchange and card-brand assessments 1.81%, pass-through, same with every processor, the tallest band. Processor markup 0.62%, the part you compare. Non-qualified downgrades 0.71% and monthly junk fees 0.28%, both flagged avoidable. Effective rate 3.42%; with the two flagged lines removed, 2.43%. Side cards group the lines into same everywhere, compare this, and remove these. Processing fee summary Each line as a share of card sales, so the lines add up. EXAMPLE STATEMENT REVIEW TO SCALE RATE Interchange and card-brand assessments Set by the banks and card brands. Same with every processor. 1.81% Interchange, set by the bank that issued the card Assessments, set by the card brands Processor markup What the processor adds on top. The only line that varies between providers. 0.62% "Non-qualified" downgrades AVOIDABLE An advertised low rate that quietly jumps on most of your transactions. 0.71% Monthly junk fees AVOIDABLE Statement, PCI, batch and other padding. 0.28% Effective rate What you actually pay on every dollar, once every fee is counted. 3.42% With the two flagged lines removed 2.43% Hold your own statement next to this. The bar down the left side is to scale: the taller the band, the bigger the cost. SAME EVERYWHERE Pass-through, set by the banks and card brands. No processor can lower this line. COMPARE THIS The one line that differs between providers. Ask for it in writing. REMOVE THESE Not bank costs. A statement review shows which of these can come off, and the total drops with them. Numbers from the example statement review on allpropay.com. Illustration, not a quote. Same with every processor The part you compare Flagged, avoidable or padded

How to tell if you’re overpaying on Interac

  • Pull your statement and check whether debit is broken out from credit.
  • A flat rate that charges the same percentage on everything is the sign.
  • The more debit-heavy your business, the more it costs you.

A note on surcharging

Since 2022, merchants in most provinces can surcharge credit cards, capped at 2.4 percent, with notice and disclosure. Two hard limits: it isn’t permitted in Quebec, and you can never surcharge Interac debit. So surcharging doesn’t change the Interac question. Pricing Interac correctly does. Check the rules for your province.

The honest bottom line

For a Canadian business, the single biggest avoidable cost is usually Interac billed at credit-card rates. The fix is a transparent setup that prices it correctly. Send us one statement and we’ll show you the split, name every fee, and tell you honestly whether switching is worth it.

Common questions

Is Interac cheaper than credit cards?
Generally yes. Interac debit usually costs a merchant far less to accept than a Visa or Mastercard credit card. The risk is that some flat-rate apps charge the same high rate on everything, so you don’t get the benefit of cheaper Interac.
Can I surcharge Interac debit?
No. Surcharging in Canada applies to credit cards only, capped at 2.4 percent, and isn’t permitted in Quebec. You can never add a surcharge to an Interac debit transaction.
How do I know if I’m overpaying on Interac?
Look at your statement for whether debit is priced separately from credit. If you’re on a flat rate that charges the same on everything, you’re likely overpaying on Interac. A free statement review will show you the split.

See your Interac split on your own statement

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