On November 4, 2014, Canada's Minister of Finance, Joe
Oliver, announced that Visa Canada Corporation and MasterCard
Canada, Inc. had submitted separate and individual voluntary
proposals to reduce their net consumer credit card interchange
rates to an average effective rate of 1.50% for a period of 5
years. Visa and MasterCard have committed to start implementing the
reductions no later than April 30, 2015.
All merchants are expected to see a reduction in interchange
rates, however both Visa and MasterCard have committed to focus on
delivering reductions to small merchant categories and
charities.
A Response to Threatened Industry Regulation
Visa and MasterCard submitted these proposals in response to the
increasing pressure merchant associations, consumer protection
groups and the Competition Bureau were placing on the Department of
Finance to regulate Canadian credit card networks' interchange
rates. The proposals have successfully averted regulation for
