Interac is changing the way it charges banks and financial institutions for sending e-Transfers, moving from tiered pricing to a flat fee, per The Logic. Though the move has reportedly been in the works for a while, the timing of it all is rather conspicuous.
Catch-up: In October, two MPs unveiled that Interac charges large banks $0.06 per e-Transfer while smaller institutions pay up to $0.43 — a little fishy considering Canada’s largest banks are all part owners. The Competition Bureau is now probing the company.
Why it matters: The change in fee structure might be too little too late, as the bureau can look into past behaviour as long as it happened while the investigation was open. If the watchdog finds that Interac has abused its position of dominance, it could face penalties or restructuring.
- Earlier this week, Interac’s CEO was grilled before a House of Commons committee on technology, with lawmakers implying that the company should be broken up.
Bottom line: The future of Interac is something that will affect the payment practices of nearly every Canadian, with over 100 million Interac e-Transfers carried out monthly.—QH