How Visa Debit Works in Canada - Credit Card Processing and Merchant Account (2024)

FAQs

How does VISA Debit work in Canada? ›

Visa Debit allows customers to make online, over-the-phone and mail order purchases, as well as recurring payments, directly from their bank account via the Visa network. Plus, when shopping at stores outside of Canada, they can pay with Visa Debit† anywhere Visa is accepted. Visa Debit is convenient.

Yes, debit cards by Visa are widely recognized for various online and electronic transactions globally, wherever Visa is welcomed. Keep in mind that Visa fees will be applicable, and these charges will be visible on your statement as a 1% international transaction service fee.

The key difference is that debit cards are linked to a bank account and draw directly from those funds (similar to a check). A credit card, on the other hand, does not draw any money immediately and must be paid back in the future, subject to any interest charges accrued.

Visa Debit cards can be used to make purchases online and in-person, as well as to withdraw cash from ATMs. One key difference between Interac and Visa Debit is that Interac in-store transactions can only be processed within Canada, whereas Visa Debit can be used internationally.

A Visa Debit card works basically like a check. The amount of your purchase is deducted directly from your checking account. You can use your Visa Debit card to: Place an order online, by phone or mail.

Most debit cards issued by non-Canadian banks will not work in Canada to make retail purchases, but some debit cards issued outside of Canada will work at point-of-purchase terminals in the country.

A Visa Debit card acts like a normal debit card, meaning it pulls funds directly from the cardholder's bank account, however they also have the capability to use the credit card networks allowing them to be used where a typical Visa is accepted.

How much is a debit card fee in Canada? ›

Debit. Debit transactions are charged a single transaction rate – regardless of the value of the purchase. It generally costs merchants under 10 cents to process each debit transaction, though the fee can be as high as 40 cents. This amount does not change, whether the purchase is for $5 or $5,000.

If your debit card has a Mastercard or Visa logo on it, you can use it just like a credit card for online purchases. If you're shopping online and there's an option to pay with a credit card, simply select it. Enter the information from your debit card and finalize the payment.

Q: Can I use my credit or debit card internationally? Yes, anywhere Visa is accepted. Visa fees will apply, and it will show on your statement as an international 1% transaction service fee.

Interac e-Transfer is not available in the United States but it is possible to send money from a Canadian bank to the U.S. via Interac's partnership with MasterCard and Western Union.

You may be able to pay using Interac Debit. Thanks to our collaboration with NYCE Payments Network, cross-border payments with a Canadian debit card is possible, giving you all the benefits and security of Interac Debit, including cashback at selected retailers when you're in the U.S.

Tips for Using Debit Cards

For example, a United States-issued Bank of America debit card will work at Canadian retailers, but the user does incur a three-percent foreign transaction fee for each purchase. Note that debit cards differ from credit cards in that they draw real-time on money in your bank account.

Cash transactions are the least expensive way to make payments for goods and services. You will get the best deal when you pay with cash because there are no hidden fees. Depending on where you are accessing your cash, you won't have to pay a fee to use it.

If you use your debit card to make a payment abroad or withdraw cash, you'll be charged a 2.99% Non-Sterling Transaction Fee. Remember that if you're given the option, it's almost always cheaper to make the payment in the local currency.