The headquarters of Interac is located in the Royal Bank Plaza in the city of Toronto. Throughout Canada, banking institutions and other businesses are linked by Interac, an interbank network that facilitates electronic money transfers.
With its e-Transfer service, Interac has become the de facto debit card system and Canada’s most popular money transfer network. Over 59,000 ATMs are linked to the Interac network, and over 450,000 businesses throughout Canada accept Interac debit payments.
Timeline of Interac’s Development
In 1984, RBC, CIBC, Scotiabank, TD, and Desjardins collaborated to create the nonprofit Interac Association, which started the network; by 2010, the association included more than 80 member institutions. They also established Acxsys, a for-profit subsidiary, in 1996, and under the Interac name, they introduced new services, including electronic transfers.
Several merger efforts between Interac and Acxsys between 2008 and 2013 were either denied by the Competition Bureau or by some of the co-owners. However, on February 1, 2018, Interac and Acxsys finally merged into a single for-profit entity known as Interac Corporation. The Interac headquarters may be found at Toronto’s Royal Bank Plaza.
- Interac Corporation bought the Ottawa-based digital identification and cyber security provider 2Keys Corporation in 2019.
- Digital ID and authentication service provider SecureKey Technologies Inc. sold its Canadian digital ID business to Interac Corporation in 2021.
- A statewide Rogers Communications network failure on July 8, 2022, caused Interac services across Canada to be interrupted, causing businesses to lose millions of dollars in transactions.
- On July 11, 2022, Interac announced they would be working with a second supplier in addition to Rogers to increase network redundancy.
Interac Direct Payment (IDP)
Canada’s national debit card service is Interac Direct Payment (IDP). The payment is automatically debited from the customer’s checking or savings account when they input their identification number (PIN). In-Depth Payment (IDP) transactions have overtaken those using traditional currency since 2001. Since 2004, customers in the United States have been able to use IDP at NYCE-affiliated retailers to make purchases in IDP.
The EFTPOS systems seen in the UK, AU, and NZ are similar in function to IDP. Instead of storing sensitive data on the physical card itself, the data input into the PIN pad for an Interac Direct Payment transaction is encrypted and confirmed by a server. This makes it far safer than transactions requiring a physical signature or credit card.
Even with these safeguards in place, debit card fraud is still a problem since hacked ATMs or POS terminals can capture the account information included on the card’s magnetic strip and use it to produce counterfeit cards. The cardholder’s identification number (PIN) can subsequently be stolen and used for fraudulent transactions by an imposter who has secretly recorded or seen the cardholder inputting their PIN.
Interac Chip Cards
Interac declared its intention to switch to EMV chip cards in 2007. High degrees of encryption make these chips very hard to reproduce, making this technology a significant improvement over the current magnetic stripes.
Shared Cash Dispensing (SCD)
Withdrawing money from an automated teller machine (ATM) not owned by the cardholder’s banking institution is known as Shared Cash Dispensing (SCD). This service is unique to Canada but is analogous to Plus and Cirrus outside. Almost all automated banking machines in Canada are compatible with Interac.
Customers may now use monies from their bank accounts to make purchases online with the help of Interac Online. Interac Online is safer than using a credit card to make a purchase online since no personal financial details are transmitted to the retailer. Acxsys Corporation, an Interac licensee until February 2018, launched this service in 2005, and it continues to grow as more businesses sign up.
Frequently Asked Questions – FAQs
1 – What is Interac?
To get the most out of life, use Interac. Interac gives you the power over your money to make the most of your life, whether you’re purchasing a cup of coffee in the morning, repaying a buddy, or enhancing your company’s payment system. Because you have better things to do with your time, our solutions streamline the payment process.
2 – How widespread is Interac across Japan?
In Japan, Interac can be found at one of thirteen different sites. If you want additional details about a particular place, click on it. The Tokyo office is where you’ll find the Koushinetsu Branch. Dial +81 (0)3-6853-8395 internationally.
3 – How much are the costs to use Interac?
Customers and businesses are not assessed any fees by Interac. Tangerine charged the price because it processed the payment over the Interac network.
4 – Is Interac an excellent company to teach English in Japan?
It is the most rewarding experience I’ve had as a teacher, and an ALT in this lovely nation is an opportunity no one should pass up. Interac is an excellent option if you want to teach English in Japan and are considering relocating here. The potential rewards make this an opportunity to be noticed.
5 – How does Interac solve Payment solutions that help drive business?
Interac solves Payment solutions by :
- Accelerating the time it takes to process payments.
- Reduce the time it takes to complete the checkout process for the consumer.
- Improve the dependability and automatic tracking.
Only CIBC accepts online bank account payments using Visa Debit. As of the beginning of 2009, around 300 businesses received the service. This included two significant colleges (for tuition payments), two major cellular carriers, regional lottery firms, and a wide range of stores. Comparable services in other countries include the Dutch iDEAL, the German Giropay, and the American Secure Vault Payments.