Changes will help smaller banks compete by levelling the playing field in the financial services sector
The Competition Bureau is monitoring Interac's commitment to change its wholesale e-transfer pricing structure from volume-based to a flat-fee, which is set to take place on November 1, 2025. Interac charges banks, credit unions and other financial institutions a wholesale fee for each e-transfer that their customers make.
Interac's current tiered, volume-based pricing provides significant discounts to financial institutions that process large volumes of e-transfers. This benefits Canada's largest banks who process hundreds of millions of
e-transfers each year but burdens smaller financial institutions with higher costs because they operate at a much lower volume.
Flat-fee pricing for e-transfers, where financial institutions of all sizes pay the same rate, will help level the playing field. This will support more competition and innovation in Canada's financial services sector. More competition will allow Canadians to benefit from greater choice, lower prices and better service.
The Bureau will continue to monitor Interac's e-transfer pricing and business practices to ensure they comply with the Competition Act. Businesses that have a dominant position in the market must not misuse their market power to create an unfair competitive advantage and hurt competition.
The Bureau urges Canadians to use the online complaint form to report any potential anti-competitive behaviour related to Interac's commitment or its conduct in the marketplace.
