Visa Canada

Visa Canada

November 04, 2014 08:00 ET

Visa Issues Undertaking to Help Establish Stability for the Canadian Payments Industry

TORONTO, ONTARIO--(Marketwired - Nov. 4, 2014) - After extensive dialogue with the Government of Canada, Visa Canada today issued an undertaking to reduce domestic interchange rates.

As part of the five-year undertaking, Visa will reduce its average effective interchange rate in Canada to 1.50% on consumer credit cards. These benefits will be spread across the merchant community, with targeted reductions for charities and rates typically applicable to small businesses.

Visa enters into this undertaking with the full expectation that the government is committed to a level playing field. If Visa or our clients are disadvantaged as a result of entering into this undertaking, Visa reserves the right at any time to terminate or amend it.

Visa has long maintained our opposition to regulatory approaches which impair a functioning market and that position has not changed. Visa believes the undertaking establishes stability and predictability for the Canadian payments industry. Importantly, the nature and content of the undertaking will avoid the kinds of regulatory measures that, when attempted in other markets, have left consumers worse off.

"With the interchange pricing issue behind us, Visa looks forward to continuing to work closely with financial institutions and merchants across the country to create and deliver safe, reliable, easy-to-use, and innovative payments tools for Canadians," said Rob Livingston, Visa Country Manager, Canada. "We also believe that Visa's undertaking will help build stronger, more productive relationships with our merchant and financial institution partners."

About Visa

Visa Inc. (NYSE:V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world's most advanced processing networks - VisaNet - that is capable of handling more than 56,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products.

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