|
Although MasterCard has no involvement in acquirer (i.e., the financial institutions that provide card acceptance services to merchants) and merchant pricing policies or agreements, it is generally understood that interchange fees are one component of the merchant discount rate (MDR) established by acquirers, which is paid by merchants to acquirers in consideration for card acceptance services. MasterCard interchange rates are established by MasterCard, and are generally paid by acquirers to card issuers on purchase transactions conducted on MasterCard cards. Interchange rates are only one of many cost components included in a MDR, and are a necessary and efficient method by which MasterCard maintains a strong and vibrant payments network. Setting interchange rates is a challenging proposition that involves a delicate balance. If interchange rates are set too high, such that they lead to disproportionately high MDRs, merchants’ desire and demand for MasterCard acceptance will drop. If interchange rates are set too low, card issuers’ willingness to issue and promote MasterCard cards will drop, as will consumer demand for such cards. In response to these competitive forces, MasterCard strives to maximize the value of the MasterCard system, including the dollar volume spent on MasterCard cards, the number and types of MasterCard cards in circulation, and the number and types of merchants accepting MasterCard cards, by setting default interchange rates at levels that balance the benefits and costs to both cardholders and merchants. Although MasterCard interchange rates have generally been available to merchants through requests to acquirers or other card acceptance service providers, MasterCard has heard the requests from merchants and others to disclose our interchange rates. MasterCard believes that providing easy access to our interchange rates will provide additional transparency to merchants, and we are pleased to be able to accommodate their request. Accordingly, MasterCard is publishing interchange rates that apply to Canadian merchants’ transactions, which include Canadian interchange rates (i.e., the interchange rates that apply to transactions conducted on a Canadian-issued card at a merchant in Canada) and international interchange rates (i.e., the interchange rates that apply to transactions conducted on a non-Canadian-issued card at a merchant in Canada). MasterCard will endeavour to publish its interchange rates generally concurrent with each rate update. While we will endeavour to keep the rates on the website up to date, it is possible that this website will not be absolutely current in all regards. In the event of any discrepancy between the information found at this website and the official rates and criteria, the official rates and criteria will apply. MasterCard is confident that this document provides merchants with the information needed to understand the interchange rates and structure and determine which rates may apply to their transactions. However, we also recognize that this information is being made available to a very diverse audience, with diverse needs and expectations. As always, MasterCard also encourages merchants to speak with their acquirer or other card acceptance service provider, if they have questions regarding any aspect of MasterCard interchange rates, acceptance of MasterCard cards, or their card-acceptance agreement. |
|