Interac denied permission to move to profit model
Interac Association is disappointed with the Competition
Bureau of Canada's decision regarding its not-for-profit status
but remains optimistic that further discussions can result
in other variations to the Consent Order that will enable
Interac Association to more effectively respond to the realities
of the changing competitive debit landscape.
"We have always believed that arriving at an effective
business model requires a number of changes to the Consent
Order beyond a for-profit status, particularly in the areas
of governance, funding and our organizational structure,"
stated Mark O'Connell, President and CEO, Interac Association/Acxsys
Corporation. "We are pleased that the Competition Bureau
will engage in discussions with us regarding these critical
Since 1996, Interac Association has operated under a Consent
Order. The Order can only be amended or terminated by a further
Order of the Competition Tribunal. The Consent Order prescribes
in detail how Interac Association is structured, how it is
governed and by whom, how it sets and collects fees, and the
voting levels required to approve many initiatives.
INTERAC(R) is a low-cost, world-class debit system and has
served Canadians well. Millions depend on debit every day.
Almost 60 per cent of all card payment transactions in Canada
are debit. In 2009, consumers carried out nearly 4 billion
debit transactions. The Canadian payments marketplace, however,
is undergoing significant shifts with a rapidly changing competitive
"Preserving a sustainable, domestic, low-cost debit
option in today's dynamic marketplace is critical," emphasized
Mr. O'Connell. "We are encouraged that the Competition
Bureau has offered to work with us on other potential changes
to the Order that will improve our ability to compete effectively