P-LINK POSQuick answer
Canada's small-merchant interchange commitments use separate network tests. The federal announcement states that businesses below the applicable annual network volume may qualify—Visa below C$300,000 and Mastercard below C$175,000—with each network assessed separately. These are interchange programs, not a promise that every merchant's total processing rate will automatically fall by the same amount.
Key takeaways
- Visa and Mastercard eligibility is assessed separately.
- The thresholds refer to annual sales volume on that network, not necessarily total business revenue.
- Interchange is only one component of merchant cost; verify the result on the current agreement and statements.
Two networks, two eligibility tests
The Department of Finance Canada states that the programs use separate annual network volumes: below C$300,000 in Visa sales and below C$175,000 in Mastercard sales. Eligible non-profit organizations below the thresholds may also benefit. Visa's official material describes a small-merchant program for qualifying domestic consumer credit transactions in Canada; Mastercard publishes its own Canadian interchange program documentation.
What the programs do not promise
A network threshold does not by itself establish the merchant's complete effective rate. Processing cost can also include per-transaction charges, acquirer or processor pricing, software, equipment, statement, PCI, optional service, chargeback and other agreement-specific items. The merchant's pricing model and pass-through treatment matter.
- Do not combine Visa and Mastercard thresholds into one test.
- Do not assume every card type or transaction channel receives the same treatment.
- Do not advertise an automatic saving before statement evidence and account eligibility are confirmed.
How to verify the practical result
Compare the written agreement and merchant statements from before and after the applicable program period. Separate Visa and Mastercard domestic consumer credit transactions, then review interchange and processor pricing with the acquirer. If the pricing structure is unclear, request a fee explanation in writing.
P-LINK POS practical insight
P-LINK POS can help merchants organize statement questions and identify which facts need confirmation. It does not promise automatic qualification, automatic pass-through or a fixed reduction; the acquirer, network rules, transaction mix and signed agreement determine the actual result.
FAQ
FAQ
What is the Visa small-merchant threshold in Canada?
The federal announcement states that businesses below C$300,000 in annual Visa sales volume may qualify, subject to Visa program rules.
What is the Mastercard small-merchant threshold in Canada?
The federal announcement states that businesses below C$175,000 in annual Mastercard sales volume may qualify, subject to Mastercard program rules.
Does eligibility guarantee my total processing rate will drop?
No. Interchange is one component of total cost, and the practical result depends on transaction eligibility, pricing structure, processor treatment and the merchant agreement.
Sources
- Department of Finance Canada — Lower credit card transaction fees for small businessesOfficial source
- Visa Canada — Small Merchant Interchange ProgramOfficial source
- Mastercard Canada — Interchange programsOfficial source
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