{"id":195806,"date":"2022-01-03T19:00:00","date_gmt":"2022-01-04T00:00:00","guid":{"rendered":"https:\/\/milesopedia.com\/news\/why-subscription-bonuses-exist\/"},"modified":"2024-05-31T13:22:57","modified_gmt":"2024-05-31T17:22:57","slug":"why-subscription-bonuses-exist","status":"publish","type":"post","link":"https:\/\/milesopedia.com\/en\/guide\/tutorials\/why-subscription-bonuses-exist\/","title":{"rendered":"Why do application bonuses exist in Canada?"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n

This is the question I was asked on the Facebook<\/a>group<\/p>\n

[\/vc_column_text][vc_custom_heading el_id=”interchange_fees_mean_bonuses_for_you” text=”Interchange fees mean bonuses for you” google_fonts=””][vc_column_text]<\/p>\n

Interchange” fees are charged by credit card issuers (banks) to merchants<\/strong> so that they can accept a category of credit cards (Visa, MasterCard and American Express).<\/p>\n

Here is the definition given by MasterCard<\/a>:<\/p>\n

“Interchange fees are paid by an acquirer to an issuer and relate to a credit card transaction.”<\/em><\/p>\n

“MasterCard’s average consumer interchange rate is 1.40 percent, which means that for an average $100 purchase made with a MasterCard credit card in Canada, the interchange fee is $1.40.”<\/em><\/p>\n

“Generally speaking, MasterCard’s rates range from 0.87% (basic “charity” transactions) to 2.69% (remote World Elite card transactions).”<\/em><\/p>\n

For example, here’s what’s in effect at Mastercard as of August 2021:<\/p>\n

\"Taux<\/p>\n

On the MasterCard website, for example, you can find out the interchange rate charged by MasterCard. They are classified by card <\/a> type (basic, world, world elite) and by Canadian financial institution.<\/p>\n

These fees are therefore paid by the merchant to the issuing company (the bank). This depends on the type of card used by the consumer. For example, the card types are:<\/p>\n