Visa Canada and MasterCard International Incorporated has announced fundamental structural changes to its interchange rates and fees. These changes affect all Canadian Merchant Acquirers and their processors, most of which are taking effect beginning in April, 2008.  These rate changes are of more significance to the floral industry as a substantial portion of business is acquired through 'card not present' transactions, one of the rates most affected by these changes.

Interchanges is a mechanism uses by the payment networks for exchanging data and transferring costs between Card issuing and Merchant Acquiring institutions, As a majority of a merchants credit card discount rate is typically comprised of the interchange fees payable to the Card Issuer, any changes mandated by the payment networks card can also lead to adjustments in the merchants discount rate.

As a result of these changes, Flowers Canada Retail which just released it’s a “new” credit card program will not accept or process new applications until the rates are disclosed by Visa and MasterCard. “It just makes sense to wait another 30 - 60 days to roll out the program” stated Susan Clarke, President of Flowers Canada Retail. “Every retailer will encounter these rate changes sooner or later and we would rather have all the rates and fee’s confirmed up front to our members rather than change them in April.”

All members are encouraged to contact their credit card merchants to clarify the upcoming rate changes. Rate changes may begin as early as your April Statements.

If you would like more information, please call Flowers Canada Retail at 1-800-447-5147.