Interchange fee, explained
A card fee has two parts. Interchange goes to the issuing bank and is set by the card network — the Department of Finance describes it as the largest component of the fees merchants pay. The markup goes to whoever processes the payment. No processor can lower interchange, so the only number a shop can shop for is the markup.
Since October 19, 2024, Visa and Mastercard have held domestic consumer credit interchange for in-store transactions at an annual weighted average of 0.95% for qualifying small businesses — under $300,000 in annual Visa volume and under $175,000 in annual Mastercard volume. That covers most barbershops in Canada. Interac Debit is different again: it is billed as a flat fee per transaction rather than a percentage — Stripe's Canadian pricing, which the BarberFlow Reader runs on, lists in-person Interac Debit at 15¢ a transaction — so a $120 appointment costs the same to accept as a $30 one.
The mistake shops make most is comparing headline rates instead of markup. A flat "2.9% and 30¢" bundles interchange and markup into one number that looks simple and hides which half you are being charged for. Run your own volume through the card processing fees calculator before signing.
BarberFlow charges interchange plus 5¢ per card transaction, with no monthly fee, no per-booking fee and no setup fee. Cash is free. The BarberFlow Reader and Tap to Pay on iPhone both take chip, tap, Interac Debit and Apple Pay on the same pricing.
See Tap to PayFrequently asked questions
What is an interchange fee?
Interchange is the portion of a card transaction fee that goes to the financial institution that issued the client's card, set by the card network rather than by the processor. It is the largest single component of what a merchant pays to accept a credit card.
What is the interchange rate in Canada for small businesses?
Since October 19, 2024, Visa and Mastercard have reduced domestic consumer credit interchange for in-store transactions to an annual weighted average of 0.95% for qualifying small businesses. Eligibility is annual Visa volume under $300,000 or annual Mastercard volume under $175,000.
Why is Interac debit cheaper than credit for a barbershop?
Interac Debit is priced as a flat fee per transaction instead of a percentage of the sale, so the cost does not rise with the ticket. That makes debit noticeably cheaper on larger tickets like a cut, beard and product together.
