At a glance
| Item | Detail |
|---|---|
| Also called | Interchange, interchange reimbursement fee |
| French term | Frais d'interchange |
| Where it sits in the payment flow | Between the merchant's acquirer and the cardholder's bank (the issuer) |
| Who controls it | The card networks set the rates. Interac says its debit interchange is currently set at zero |
| Does it cost the merchant | Yes, indirectly. It is built into the fees your processor charges |
How it works
This fee moves between two banks. You do not send it. You only see it if your statement lists it. Visa calls it the transfer between the shop's bank and the cardholder's bank.
- A customer pays with a credit card.
- The issuer approves the sale and sends the money, minus interchange.
- Your acquirer or processor pays the interchange to the issuer.
- Your processor then bills you for it, plus network fees and its own markup.
A Canadian example
A Winnipeg bakery sells a $40 gift basket. The customer taps a Visa Classic card. Visa's published card-present rate for that card is 1.25%. The fee on this sale is $0.50. The bakery never pays Visa or the issuing bank. The $0.50 is part of what the processor deducts. An example only, not a quote. Your own rate depends on the card, how it was taken and your size.
What is different in Canada and Québec
- Visa and Mastercard each publish their Canadian interchange rates. The full tables are in our interchange rates guide.
- Interac says its debit interchange is currently set at zero. Interac says merchants pay a processing fee to their acquirer instead, set by contract.
- Since 19 October 2024, federal changes have lowered interchange for small businesses. Whether the saving reaches you depends on your processor and pricing model.
- Québec does not change interchange. It does ban a card surcharge on consumers. The cost stays inside your prices.
- Visa's small-business threshold and some rates change on 24 October 2026. Check the guide for the current numbers.
What it costs and where it shows on your statement
It is usually the biggest part of what a credit card sale costs. On interchange-plus pricing, it appears as its own line. On flat or tiered pricing, it is folded into one blended rate. You will not see it. Either way, you cannot negotiate it with your processor.
Where CleverPays fits in this step
The fee belongs to the issuer and the card networks. The acquirer collects it and passes it on. CleverPays does not set interchange or network fees. CleverPays is operated by Groupe Heo Inc., an Agent of Fiserv Canada Ltd.
We can read a recent statement with you. We will show you each fee line, interchange included. We will walk you through what the networks fix and what your agreement sets. We answer in English and French.
Common mistakes
- Asking a processor to lower it. Only the markup and account fees are open to discussion.
- Assuming a flat rate means no such fee. It is still inside the rate.
- Comparing your rate to a published one. Network fees and markup sit on top.
Related terms
- Interchange-plus pricing: a model that lists interchange and the markup separately.
- Card network: Visa, Mastercard or Interac, which set rules and rates.
- Assessment fee: a network fee charged on top of interchange.
- Small-business interchange reduction: the 2024 federal cut for small merchants.
- Effective rate: total fees divided by card sales.
- Payment processor: the company that collects and passes on the fee.
Common questions
Who gets the interchange fee?
The bank that issued the customer's card. The acquirer pays it. The merchant bears the cost through processing fees.
Can a merchant avoid interchange fees?
Not on card sales. Interac debit has none, but a processing fee still applies. Cash has none, though it has other costs.
Is interchange the same as the fee my processor charges?
No. It is one layer. Your processor adds network fees and a markup. Some accounts add monthly fees. Divide total fees by total sales to see the full cost.
Sources
- Visa Canada, Interchange for small businesses, read 6 October 2026.
- Interac, Understanding fees, read 6 October 2026.
- Visa Canada, interchange reimbursement fees, read 6 October 2026, for the 1.25% example rate.
- Department of Finance Canada, credit card fee reductions for small businesses, October 2024.
- Office de la protection du consommateur, frais interdits, as cited in guide 53.
