Why is my debit transaction charged at credit card rates?

Canadian debit runs on two separate networks. Interac is a domestic debit network that prices at flat per-transaction fees, typically 5 cents at our wholesale cost. Visa Debit and Mastercard Debit run on the credit card networks at network-published interchange, typically 0.20 to 0.50 percent depending on transaction type. Flat-rate processors (Square Canada, most legacy bank-bundled processing) charge the same flat rate on every debit transaction regardless of which network it ran on. The difference between what they charge you and what the actual interchange or Interac cost is goes to the processor. On interchange-plus pricing, the actual cost shows on your statement as a pass-through line. We charge 0.30% margin on credit volume. Anything between actual cost and what you currently pay is markup.

Will I have to replace my POS system or terminal?

It depends what you are on. Standalone terminals (Verifone, Ingenico, Pax) can usually be reprogrammed to route through Payzium without hardware replacement, though a swap is sometimes cleaner. Square POS hardware does not work with third-party processors on recent models. Clover hardware is processor-locked at the device level. Lightspeed Retail and most open-architecture POS systems work with us directly. We confirm compatibility before you sign.

I am on a terminal lease. Can I switch anyway?

Yes. The lease and the merchant account are legally separate contracts. Closing your merchant account does not close the lease. We have two options: process on Payzium with the leased terminal (if it is reprogrammable, which most are), or swap to hardware that is yours. The lease keeps running either way until it terminates by its own terms, but your processing cost drops the day you switch. We can also help analyze whether early-exit penalties on the lease are worth paying given the rate savings.

How fast can I switch?

It depends on your hardware. Open POS or standalone-terminal merchants plug in directly. Lease-locked or hardware-swap setups take longer; we coordinate the exit path. PCI compliance assistance and bank verification happen in parallel.

What is "Pay less or it's free"?

Your first 90 days on Payzium have to cost you less than your old processor did. We compare your effective rate on Payzium against your most recent prior-processor statement, like for like, normalized if your volume or card mix shifts so the comparison stays honest. If you do not pay less, we refund every Payzium fee you paid in those 90 days and put up to CA$1,000 (Canadian merchants) or US$1,000 (US merchants) toward moving you to another processor. You keep any savings either way. Full terms on /pay-less.

What about the PCI compliance fees I am being charged?

We include PCI compliance assistance at no charge. Our team walks you through the annual self-assessment questionnaire, which is the only thing standing between you and the elimination of those quarterly non-compliance fees. The fees disappear on the first quarter after you complete the SAQ.

Brick and mortar

Most of what your customers pay you with is debit. You are paying credit-card rates on every swipe.

Interac debit costs us 5 cents per transaction. Visa Debit and Mastercard Debit cost 0.20 to 0.50 percent at interchange. We pass both through at cost and charge our 0.30% margin on credit volume, plus a $5 monthly account fee. In writing.

Open free account

Interac at cost. Debit at cost. In writing.
Pay less or it's free
Honest Rate Promise: 2x junk fee refund
No junk fees

What you pay

A retailer on Payzium at typical volumes.

$114/mo
$20,000 monthly volume. About $2,295 a year less than Square Canada.
$320/mo
$50,000 monthly volume. About $5,321 a year less than Square Canada.
$743/mo
$120,000 monthly volume. About $13,069 a year less than Square Canada.
$1,543/mo
$250,000 monthly volume. About $27,293 a year less than Square Canada.

Math is for 50% Interac, 20% Visa and Mastercard debit, 30% credit, at $35 average ticket, 95% card-present. The calculator runs it on your numbers.

Common patterns

Four cost mechanisms every independent retailer pays for.

01
Two debit networks. Two structures. One flat rate captures all of it.
Canadian debit splits between Interac (domestic network, flat per-transaction fees of 5 cents through Payzium) and Visa Debit and Mastercard Debit (network rails, interchange of 0.20 to 0.50 percent depending on transaction type). On a flat-rate processor like Square Canada (0.75% + 7 cents on Interac in person), every debit transaction is charged the same Interac rate regardless of which network it ran on. The gap on Interac is large: on a $35 Interac transaction, Square Canada charges about 33 cents. Payzium charges roughly 10 cents (5 cents Interac at cost plus the 5 cents per-tx fee, with zero Payzium margin on Interac volume). The gap is about 23 cents per transaction on the network that processes the largest single slice of Canadian retail card volume. Multiply by typical retail transaction frequency and the savings on Interac alone can exceed everything else combined.
02
Multi-year leases not disclosed up front
Terminal leases are typically 48-month, non-cancellable, with per-terminal insurance billed monthly, and they are not rent-to-own. The lease company is legally separate from your processor, so closing your merchant account does not close the lease. The terms are binding; the problem is when they are not disclosed up front. We disclose ours: hardware on /hardware, rates on /pricing.
03
PCI non-compliance penalty
Most retail merchant agreements include a PCI non-compliance fee, usually $99 to $199 quarterly, charged when the merchant has not completed the annual PCI self-assessment questionnaire on the processor's portal. Most independent retailers do not know the portal exists. The fee bills automatically. Over four years, a non-compliant retailer pays $1,600 to $3,200 in fees that completing one online form would have eliminated. We include PCI compliance assistance at no charge.
04
Monthly minimums and statement fees
Most processor contracts include a monthly minimum fee, $25 to $50, charged whenever your processing volume falls below the threshold that would generate that much in discount fees. Plus a monthly statement fee, $10 to $20. Plus an account-on-file fee, $5 to $15, on merchant accounts older than 24 months. A low-volume retailer on a slow month can pay $60 to $80 in flat fees on $1,200 in processing volume, an effective rate of 5 to 7 percent. We do not charge monthly minimums, statement fees, or account-on-file fees. The scam-fee list is published on /honest-rate-promise.

What changes

Three retailers. Three switches.

Toronto, ON
Specialty food shop
$48,000 per month, 75% debit
On Square Canada at roughly 1.53%. Paying $733 per month on processing.
On Payzium at 0.30% plus interchange. Paying $374 per month.
$4,311
Lower annually
Calgary, AB
Hardware and home goods
$85,000 per month, 65% debit
On Square Canada at roughly 1.53%. Paying $1,298 per month on processing.
On Payzium at 0.30% plus interchange. Paying $658 per month.
$7,681
Lower annually
Halifax, NS
Boutique apparel
$22,000 per month, 80% debit
On Square Canada at roughly 1.53%. Paying $336 per month on processing.
On Payzium at 0.30% plus interchange. Paying $155 per month.
$2,167
Lower annually

Illustrative composite. Numbers reflect Payzium's published rates and typical retailers card mix at the stated volumes. Not a real customer case.

Open account

Apply online in minutes. No sales call, no commissioned rep.

Step 1
Tell us about your retail
Business name, role, monthly volume, your POS.
Step 2
Connect your bank
Plaid or manual.
Step 3
Sign and go live
Sign and go live. If you are on an open POS or a standalone terminal we plug in directly. If you are mid-contract on a terminal lease, we coordinate the exit path.

Open free account

No phone calls. No quote forms. Rates are on /pricing.

FAQ

Most of what your customers pay you with is debit. You are paying credit-card rates on every swipe.

A retailer on Payzium at typical volumes.

Four cost mechanisms every independent retailer pays for.

Two debit networks. Two structures. One flat rate captures all of it.

Multi-year leases not disclosed up front

PCI non-compliance penalty

Monthly minimums and statement fees

Three retailers. Three switches.

Apply online in minutes. No sales call, no commissioned rep.

Tell us about your retail

Connect your bank

Sign and go live

Frequently asked questions

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