Debit Cards Versus Credit Cards in Canada

[Ephraim]

Just a note for our visitors from the United States who bank with small banks.

 

In Canada we do not have a Credit/Debit button on our credit terminals. Therefore, if you want to use debit payment with a PIN, you will need to have a stand-alone debit card with no MasterCard or Visa logo on the card and your bank must be a member of the NYCE network (Interac in Canada.)

 

Any card that has a Visa/MasterCard logo in Canada is strictly a credit card as far as retailers are concerned. (It relates to Canadian Anti-trust laws.)

 

I'm writing this because as a merchant we have had a few guests who have had problems with their small banks not understanding this limitation and insisting that transactions be processed as debit transactions... except that we just can't do it... the terminals automatically choose if it's a debit transaction or a credit transaction based on the card.

 

Also, if you use your card for renting a bicycle (Bixi) or the like, the deposit amount is processed as a hold and may cause your debit card to go over it's limits.