Personal Finance

Interac to Remain Non-Profit (Article)

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  • Feb 13th, 2010 1:54 pm
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[OP]
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Aug 18, 2005
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Interac to Remain Non-Profit (Article)

n a decision Interac described as "disappointing," the federal competition watchdog said Friday that it could not support the debit service provider's bid to become a for-profit company.

However, the Competition Bureau opened the door to agreeing to other changes in Interac's business model that would make it more competitive with Visa and MasterCard as the two multinational giants prepare to enter Canada's $163 million a year debit market.

For example, Interac could become a privately incorporated company with more independent directors on its board, said Adam Fanaki, a lawyer with Davies Ward Phillips and Vineberg, which advised the bureau on its decision.
(source)

Comments? On one hand, I am not a user of interac due to the greater potential impact of any fraud on my account.

But I don't like what I see here because it open the door to pushing the fees for the credit/debit processing industry upwards, which really hurts small businesses and raises the cost of goods and services for everyone.
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Nov 15, 2004
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Toronto
Just another reason to never use your debit card. This is going to devastate the country's small businesses.
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Dec 11, 2005
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Piro21 wrote: Just another reason to never use your debit card. This is going to devastate the country's small businesses.
WTF are you talking about? If anything this is a boon for small business, as it means their Interac charges will not increase, or at least will not increase as quickly as if it was spun off.

This whole thing is only good news IMO. The reason Interac is so cheap for both consumers and businesses is because it is non-profit. This is a huge blow to Visa and MC debit who will have a hard time competing with a non-profit Interac.
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
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Nov 15, 2004
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I misinterpreted the last sentence as the lawyer trying to find ways for them to circumvent the competition bureau's decision. I was out late last night and it's still early. I probably shouldn't be posting :(
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Aug 8, 2009
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Canada
Yup, Brunes is correct.

This is good news for small business.

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