Interac

Interac is Canada’s dominant domestic debit-payment and account-to-account (A2A) money-movement brand. Operated by Interac Corp.—a company owned by major Canadian financial institutions—the network powers point-of-sale debit purchases, ABM withdrawals, and digital money transfers (Interac e-Transfer). Interac connects banks, credit unions, merchants, payment processors, mobile-wallet providers, and other participants under common technical, security, and brand standards.

At a glance — Interac

Type	Bank-owned payment network & brand (Interac Corp.)
Core services	Interac Debit (POS/ABM) • Interac e-Transfer (A2A) • Tokenization for mobile wallets • Fraud & risk tools
Acceptance	Most Canadian merchants, ABMs, and online gateways (via supported methods); mobile wallets supported at enabled terminals
Settlement rails	Interbank clearing/settlement occurs over Payments Canada systems (e.g., ACSS for retail batches; other mechanisms for near-real-time)
Security	EMV chip & PIN; NFC/contactless with dynamic data; network tokenization; risk scoring; real-time controls; dispute rules
Official site	interac.ca

What Interac does

Interac provides the brand, network specifications, risk/fraud controls, dispute rules, certification programs, and tokenization services that allow participating financial institutions (FIs) and payment processors to offer:

• Interac Debit — card-present purchases, cash-back at merchants (where offered), and ABM withdrawals nationwide.
• Interac e-Transfer — digital money movement between Canadian bank/credit union accounts using recipients’ email addresses, mobile numbers, or account identifiers; features include Auto-deposit, Request Money, bulk/business features, and biller integrations.
• Mobile & tokenized payments — digital debit credentials provisioned into mobile wallets (e.g., OEM wallets) or merchant apps using network tokens instead of PANs.
• Online & in-app debit — select gateways support debit checkout via tokenized cards or bank-account rails (availability varies by FI/processor).

Interac Debit

How it works

Card-present transactions flow from the merchant terminal through a processor to the cardholder’s FI over Interac’s network. Chips generate dynamic cryptograms; PIN entry authenticates the cardholder (contactless uses tap-to-pay limits with risk rules). Most transactions clear in retail batches with end-of-day settlement through Payments Canada’s ACSS; some flows use near-real-time processing for approvals and risk checks.

Features

• EMV chip & PIN; NFC/contactless (“tap”) with online risk controls and cumulative limits
• Cash back at POS (optional), ABM withdrawals, refunds, and reversals
• Low, regulated-by-market interchange structure (merchant costs are typically cents, not percent)
• Tokenized debit for mobile wallets and wearables at supported terminals

Acceptance and cross-border

Interac is a domestic network. For use outside Canada, many debit cards are co-badged or linked with partner networks (arrangements vary by issuer—e.g., global ATM networks or secondary brands on the card).

Interac e-Transfer

Overview

Interac e-Transfer moves money between participating Canadian FIs, typically within minutes, by instructing the recipient’s FI to credit the account once the recipient is identified (via Auto-deposit or link). Message notifications are usually sent by email/SMS; the data channel is separate from the underlying settlement between FIs.

Key features

• Auto-deposit: funds route directly to the recipient’s account without answering a security question.
• Request Money: send a payment request that the payer can approve in their banking app.
• e-Transfer for Business / bulk: higher limits, richer remittance data, and accounting integrations (availability by FI).
• Limits & fees: transfer limits, fees, and holds are set by each participating FI.

Security & fraud

Funds move FI-to-FI; authentication happens inside online/mobile banking. Risks include email/SMS interception and social-engineering scams. Best practices: enable Auto-deposit, verify requestors, use strong sign-in security, and keep contact info current. Interac and FIs deploy real-time analytics, holds, and reversals where applicable, subject to network and FI rules.

Tokens, mobile wallets, and online debit

Interac issues network tokens that replace primary account numbers in mobile wallets and select online experiences. Tokens can be life-cycled (suspended, replenished, deleted) without re-issuing the physical card. Contactless debit supports device biometrics (e.g., fingerprint/face) plus transaction risk controls at the terminal and issuer.

Governance and organization

Interac Corp. was formed by combining the former Interac Association and Acxsys Corporation. It operates as a bank-owned network with independent directors and public-interest obligations in its governance framework. Interac sets brand and participation rules, certifies processors and devices, and coordinates incident response and fraud-mitigation programs across participants.

Relationship to Payments Canada and the Bank of Canada

Interac provides the consumer-facing network and brand. Interbank clearing and settlement of underlying payments occur over Payments Canada systems (e.g., ACSS for retail batches) with risk oversight by the Bank of Canada for designated systems. Interac e-Transfer and debit services are designed to align with national rules, ISO-based messaging, and evolving Canadian payments modernization.

Pricing and disputes (high level)

• Merchant pricing: Debit interchange in Canada is typically low/flat compared with percentage-based credit interchange; acquirer/processor fees vary by contract.
• Consumer fees: Many FIs package domestic debit at no per-purchase fee; e-Transfer fees/limits vary by account type.
• Chargebacks & disputes: Interac defines dispute categories and timelines; rights differ from credit-card chargebacks (e.g., lower fraud liability for chip-and-PIN with proper cardholder verification).

History (brief timeline)

• 1984–1986: Major banks and credit-union centrals launch shared ABM and debit networks under the Interac Association.
• 1990s: Rapid POS debit expansion; chip migration planning.
• Early 2000s: Online debit pilots; Interac e-Transfer service emerges from partnerships and is expanded through Acxsys.
• 2010s: Nation-wide EMV chip adoption; contactless (“Flash”) and mobile tokenization; Auto-deposit and Request Money rollouts.
• 2018–present: Corporate consolidation as Interac Corp.; continued e-Transfer growth, richer data options for business, and enhanced risk/fraud controls.

Security, privacy, and accessibility

Interac and participants follow EMV, PCI-DSS (where applicable), and Canadian privacy law. Accessibility efforts focus on terminal ergonomics, tactile cues, audio prompts, and inclusive mobile experiences.

See also

• Payments Canada • Bank of Canada • Canadian dollar
• Statistics Canada (payments data & trends) • Royal Canadian Mint
• Debit card • Mobile payment • Financial consumer protection in Canada (if created)

External links (official)

• Interac — Home & products: https://www.interac.ca/
• Interac — e-Transfer (features & security): https://www.interac.ca/en/consumers/e-transfer/
• Interac — Debit & mobile payments: https://www.interac.ca/en/business-landing/debit/
• Interac — Fraud education & safety: https://www.interac.ca/en/security/