Some purchases made in Canadian stores with Visa-branded debit cards were routed over the Visa network instead of Interac, a breach of policy and a move that has cost retailers unexpected interchange fees.
TORONTO – A Visa-branded debit card issued by Canadian Imperial Bank of Commerce (CIBC) is operating in violation of Canada's voluntary code of conduct for the payments industry, the Toronto Star reports.
The breach occurred as some purchases made in Canadian stores with the cards were routed over the Visa network instead of Interac, a breach of the country's code of conduct.
Visa acknowledged that some merchants, including Walmart, Williams-Sonoma, The Gap, Banana Republic, Starbucks, and Old Navy, have been charged incorrect transaction fees, though they said that the overcharge amounts to only a few hundred dollars. However, the breach occurs just two weeks after the first Visa-branded debit card hit the Canadian market. As such, Finance Minister Jim Flaherty has threatened to impose binding regulation.
Visa acknowledged that some merchants, including Walmart, Williams-Sonoma, The Gap, Banana Republic, Starbucks, and Old Navy, have been charged incorrect transaction fees, though they said that the overcharge amounts to only a few hundred dollars. However, the breach occurs just two weeks after the first Visa-branded debit card hit the Canadian market. As such, Finance Minister Jim Flaherty has threatened to impose binding regulation.
