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Interac
DCHP-2 (Jan 2013)
n. & adj. — proprietary, Finance
a national electronic system using a debit card and PIN that allows cardholders to access their bank account at automated teller machines or to pay retailers.
Type: 1. Origin — The Interac Association was formed in 1984 by five Canadian banks, with the goal of creating a national network for cash-dispensing. In 1990, Interac launched an Interac debit service, Interac Direct Payment, that became available nationally in 1994 (see Canadian Encyclopedia reference). Now the card is accepted at almost all retailers and is a more popular form of payment than cash. Today, the term Interac is used to refer to the debit payment system - "pay by Interac" is synonymous with "pay by debit card". In 2013, 60,000 bank machines and 766,000 point-of-sale terminals were part of the Interac system (see Interac reference). Interac remains most prevalent in Canada (see Chart 1).
See also COD-2, s.v. "Interac", which is marked "Cdn proprietary".
See also COD-2, s.v. "Interac", which is marked "Cdn proprietary".
Quotations
1985
The group, called Interac Association, will run the largest shared network in Canada. Its members include four large banks - the Bank of Nova Scotia, the Canadian Imperial Bank of Commerce, the Royal Bank of Canada and the Toronto- Dominion Bank, along with the Quebec-based credit union movement.
1985
Four major Canadian banks and Quebec's confederation of caisses populaires have agreed to combine their automated teller machine networks into country-wide shared system called Interac.
1995
Banks were accused of anti-competitive behavior in last week's draft order from the Bureau of Competition Policy, which could shake up the Interac network that links instant tellers and debit payment machines.
But the insurers say the bureau's plan to get them Interac access won't be enough unless they are given direct access to the cheque-clearing system.
1996
The "tips" appear to be little more than advertising for the bank's various accounts, but judge for yourself. Here are some tips that aren't blatant advertising:
* Use self-serve bank services for basic transactions. (And contribute to the bank's profits since self-serve banking is cheaper to use, but also means a far larger profit point than teller service).
* Use Interac direct payment (debit card) instead of cheques. (Again, it's cheaper, but it also provides a far larger profit margin.)
2006
Meanwhile, bank-card fraud is also on the rise but continues to affect only a minority of Canadians, says Interac Association, the national debit-card service. In 2005, Canadian financial institutions reimbursed about $70.4 million to customers after scams compromised 72,000 bank cards. That compared to total reimbursements of $60.2 million affecting some 48,900 cards in 2004.
2007
The Interac Association reported Canadians swiped their debit cards 15.6 million times on Dec. 21, making it the year's busiest shopping day. Association spokeswoman Tina Romano said she expected Boxing Day swipes to hover around last year's total of 6.4 million.
2013
Normally, there is no charge to a customer for using Interac debit; the merchant actually pays a fee per transaction to their payment processor, who, in turn, pays a small portion to the nonprofit Interac Association. Surcharges are out there, however, and they're a bit of a grey area. The Interac Association says it's the merchants' call, since surcharges are allowed under a consent order of the Competition Tribunal, but the rules require that a customer be advised of any surcharge before he or she completes the transaction on the PIN pad screen, so they have the option of declining and paying in some other way.
2015
New this year is the QR Code featured on all the kettles; enabling people to scan the code with their phone and be directly linked to an online donation site.
"Lots of people in recent years have said if we had interac, they would donate," said Stewart. "People don't often carry cash anymore, so this is a simple way for them to donate online."
References
- Interac • "About Us"
- COD-2
- The Canadian Encyclopedia • "Interac Association"
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