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The Interac Association, which runs Canada's main payments network for ATMs
and debit card transactions, is discussing with the federal government whether to
become a for-profit entity. The association may restructure itself to compete with credit
card companies such as Visa Inc. that are trying to increase their share of the country's
debit card market.
Large Canadian banks and the Desjardins Group made the network available
to retailers in 1994 to enable customers to make PIN-debit purchases with
debit cards. Interac agreed with the Competition Bureau in 1996 that it only
can charge fees that cover its costs. The association wants to amend that agreement
to adjust to rapid changes in the market, says Mark O'Connell, Interac CEO.
