Interchange and Wholesale Discount Rates

Interchange fees, also known as IC or IRF, are the fees that Acquirers like First Data Canada are required to pay to Card Issuers under Network rules. The Networks include Visa^®, MasterCard^®, Discover^®, and UnionPay International and their rules ensure that Acquirers pay Card Issuers for each credit or debit transaction you process. American Express^® operates a non-interchange based network and charges First Data a wholesale discount rate.

Interchange rates are set and regulated by Visa Canada, Mastercard Canada, Discover Canada and UnionPay International, whereas Wholesale Discount Rates are set by American Express in Canada. The Interchange Rate for any particular transaction depends on a variety of factors including method of acceptance, the type of business accepting cards (MCC), type of card, whether it is face-to-face, or many other variables. The result is that some transaction clear at higher interchange rates than others.