Interac handles small payments all the time without handing all control to the central banks.
It's very doable but they just want to do it for various reasons.
It's very doable but they just want to do it for various reasons.
Interac is a standard for moving money around in Canada. First of all it is supported at virtually every store in Canada because the processing fees are significantly lower than credit cards and anyone with a bank account can use it, but it is also used online. For example, you can send money to another person through email or text messaging, and they also do internet payment processing. It's largely handled from your bank.
To give you an example, I pay my daycare using interac, I just have the name and email listed in my bank software, and when I go in and send the money it shows up immediately in her bank account. Lots of people pay their rent with e-transfer, or other things.
The last couple years I paid my income taxes using interac e-transfer, showing it's a heavily used.
It can also be used as a point of sale online, where they give you a link that begins the process of authorizing the payment, and from there it's very much like using PayPal or something.
One thing that's much nicer about it than credit cards is it's all instant. With credit cards, it takes time to process, it takes time to show up in your account, charges take time to show up on your list, with interac, the moment that you put it in the payment goes through the money is taken from your account and put into the other account, or is immediately taken from the other account and put into your account.
To give you an example, I pay my daycare using interac, I just have the name and email listed in my bank software, and when I go in and send the money it shows up immediately in her bank account. Lots of people pay their rent with e-transfer, or other things.
The last couple years I paid my income taxes using interac e-transfer, showing it's a heavily used.
It can also be used as a point of sale online, where they give you a link that begins the process of authorizing the payment, and from there it's very much like using PayPal or something.
One thing that's much nicer about it than credit cards is it's all instant. With credit cards, it takes time to process, it takes time to show up in your account, charges take time to show up on your list, with interac, the moment that you put it in the payment goes through the money is taken from your account and put into the other account, or is immediately taken from the other account and put into your account.
It is a company, but it's also a standard.
Originally, interac was a non profit operated by the big 5 banks (Canada doesn't have a lot of competition in the banking space) to create the interoperability standard. Eventually 80 companies participated. Later on a for profit entity was spun off to handle branded services online. Eventually the two branches of interac combined into.one entity.
It likely could handle international payments, but for 2 factors, both being "it's Canadian".
1. It's Canadian, nobody is going to adopt a standard from such a backwater
2. It's Canadian, and after Trudeau weaponized the banks against his own citizens adopting Canadian technologies in your banking system is a non-starter since it's a national security threat.
Originally, interac was a non profit operated by the big 5 banks (Canada doesn't have a lot of competition in the banking space) to create the interoperability standard. Eventually 80 companies participated. Later on a for profit entity was spun off to handle branded services online. Eventually the two branches of interac combined into.one entity.
It likely could handle international payments, but for 2 factors, both being "it's Canadian".
1. It's Canadian, nobody is going to adopt a standard from such a backwater
2. It's Canadian, and after Trudeau weaponized the banks against his own citizens adopting Canadian technologies in your banking system is a non-starter since it's a national security threat.
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