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{{Short description|Canadian interbank network}}
{{For|the Japanese company| Link Interac Inc.}}
{{Use Canadian English|date=August 2022}}
{{Use dmy dates|date=February 2018}}
{{Cleanup|reason=Not encyclopedic at the moment. Needs more work in tone and style|date=April 2017}}
{{Infobox Interbank Network
| name         = Interac
| logo         = Interac Brand 2021.png
| logo_caption = 
| logo_size    = 150px
| area         = Canada
| members      = 83
| atm          = 59,000
| owner        = Interac Corporation
| foundation   = {{Start date and age|1984}} (as Interac Association)<br />{{Start date and age|2018|2|1}} (as Interac Corporation)
| website      = {{official URL}}
}}

'''Interac''' is a Canadian [[interbank network]] that links financial institutions and other enterprises for the purpose of exchanging electronic [[financial transaction]]s. Interac serves as the Canadian [[debit card]] system and the predominant funds transfer network via its [[Interac e-Transfer|e-Transfer]] service. There are over 59,000 [[automated teller machine]]s that can be accessed through the Interac network in Canada, and over 450,000 merchant locations accepting Interac debit payments.{{citation needed|date=February 2018}}

==History==
{{Infobox company
| name = Interac Corporation
| type = 
| traded_as = 
| ISIN = 
| industry = [[Financial services]]
| predecessors = {{ubl|
* Interac Association
* Acxsys Corporation}}
| founded = {{Start date and age|2018|02|01}}
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| num_locations_year = <!-- Year of num_locations data (if known) -->
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| owners = 
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| num_employees_year = <!-- Year of num_employees data (if known) -->
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}}
The network was launched in 1984 through the [[nonprofit organization|nonprofit]] '''Interac Association''', a cooperative venture between five [[financial institution]]s: [[Royal Bank of Canada|RBC]], [[Canadian Imperial Bank of Commerce|CIBC]], [[Scotiabank]], [[Toronto-Dominion Bank|TD]], and [[Mouvement Desjardins|Desjardins]]; by 2010, there were over 80 member organizations. The group founded a for-profit counterpart organization, Acxsys, in 1996, which launched additional Interac-branded services including [[Interac e-Transfer|e-transfers]]. Following several aborted merger attempts which were either blocked by the [[Competition Bureau]] or by some of the co-owners between 2008 and 2013, Interac and Acxsys were combined into a single for-profit organization, '''Interac Corporation''', on 1 February 2018.<ref>{{cite news|url=http://www.ctvnews.ca/bureau-axes-interac-request-to-become-for-profit-1.483315 |archive-url=https://web.archive.org/web/20121021022150/http://www.ctvnews.ca/bureau-axes-interac-request-to-become-for-profit-1.483315 |url-status=dead |archive-date=21 October 2012 |title=Bureau axes Interac request to become for-profit |publisher=Bell Media |work=CTV News.ca |date=12 February 2010 |access-date=18 October 2013 |author=The Canadian Press}}</ref><ref name="tgam-interac-corp">{{cite news|url=https://www.theglobeandmail.com/report-on-business/transaction-giant-interac-announces-changes-to-corporate-structure/article37849415/|title=Major revamp gives Interac a chance to compete against rivals|first=James|last=Bradshaw|work=[[The Globe and Mail]]|date=5 February 2018|access-date=12 February 2018}}</ref> Interac's head office is located at [[Royal Bank Plaza]] in [[Toronto]].

In 2019, Interac Corporation acquired 2Keys Corporation, Ottawa-based [[digital identity]] and [[Computer security|cyber security]] for governments, financial institutions and commercial clients'''.'''<ref>{{Cite news |last=Bradshaw |first=James |date=5 November 2019 |title=Interac acquires Ottawa-based digital identity specialist 2Keys |work=The Globe And Mail |url=https://www.theglobeandmail.com/business/article-interac-acquires-ottawa-based-digital-identity-specialist-2keys/ |access-date=4 April 2022}}</ref><ref>{{Cite web |title=Interac Corp. acquires Ottawa-based 2Keys | date=5 November 2019 |url=https://www.interac.ca/en/content/news/interac-corp-acquires-ottawa-based-2keys/#:~:text=TORONTO%2C%20November%205%2C%202019%20%E2%80%93,financial%20institutions%20and%20commercial%20clients. }}</ref>

In 2021, Interac Corporation acquired the exclusive rights to the digital ID services for Canada from the digital ID and authentication provider SecureKey Technologies Inc.<ref>{{Cite web |title=Interac Corp. acquires exclusive rights to SecureKey digital ID services for Canada |url=https://www.interac.ca/en/content/news/interac-corp-acquires-exclusive-rights-to-securekey-digital-id-services-for-canada/#:~:text=acquires%20exclusive%20rights%20to%20SecureKey%20digital%20ID%20services%20for%20Canada,-Enables%20development%20of&text=TORONTO%2C%20October%201%2C%202021%20%E2%80%93,rights%20to%20SecureKey%20Technologies%20Inc. |website=Interac| date=October 2021 }}</ref><ref>{{Cite news |last=Streeter |first=Joe |date=October 1, 2021 |title=Interac strengthens digital ID in Canada and North America with SecureKey deal |work=Payment Expert |url=https://paymentexpert.com/2021/10/01/interac-strengthens-digital-id-in-canada-and-north-america-with-securekey-deal/ |access-date=5 April 2022}}</ref>

On July 8, 2022, all Interac services were disrupted in Canada due to a [[2022 Rogers Communications outage|nationwide Rogers Communications network outage]] resulting in millions of dollars in lost transactions for businesses.<ref>{{Cite tweet |user=INTERAC|number=1545532928599408643|url=https://twitter.com/interac/status/1545532928599408643|title=Due to the continued nationwide Rogers outage of business and consumer network services, INTERAC Debit and INTERAC e-Transfer continue to be unavailable across Canada.|access-date=2022-07-09 |language=en}}</ref><ref>{{Cite news |date=2022-07-08 |title=Rogers says it has started restoring service following widespread wireless outage - BNN Bloomberg |agency=[[The Canadian Press]]|url=https://www.bnnbloomberg.ca/rogers-outage-affects-passport-services-interac-and-offices-1.1789398 |access-date=2022-07-09 |website=BNN}}</ref> On July 11, 2022, Interac stated they were adding another provider in addition to Rogers to strengthen their network redundancy.<ref>{{cite web | url=https://torontosun.com/business/money-news/rogers-falls-as-massive-outage-raises-concerns-over-shaw-deal | title=Rogers falls as massive outage raises concerns over Shaw deal }}</ref>

==Services==
{{more citations needed section|date=August 2022}}
Interac is the organization responsible for the development of a national network of two shared electronic financial services:

===Interac Direct Payment (IDP)===
Interac Direct Payment (IDP) is Canada's national [[debit card]] service for purchasing of goods and services. In 1990 Interac launched a new pilot called Interac Direct Payments. Customers enter their [[personal identification number]] (PIN) and the amount paid is deducted from either their chequing or savings accounts.
As of 2001, the number of transactions completed via IDP has surpassed those completed using physical money.<ref>{{cite web|last=Buchholz |first=Garth A. |url=http://www.informit.com/articles/article.aspx?p=394507&seqNum=5 |title=INTERAC Milestones in Canada &#124; Electronic Cash Payments: Canada Loves its Debit Cards, but Will the Cashless Revolution Happen in the U.S.? |publisher=Pearson Education|work=InformIT |date=22 July 2005|access-date=18 October 2013}}</ref>
Beginning in 2004, IDP purchases could also be made in the United States at merchants on the [[NYCE]] network.
IDP is similar in nature to the [[EFTPOS]] systems in use in the United Kingdom, Australia and New Zealand.

Interac Direct Payment is a PIN-based system where the information entered on the PIN pad is encrypted and verified at a central server, rather than being stored on the card itself{{citation_needed|date=July 2024}}. Because of this, it is significantly more secure than traditional signature or card-based transactions{{dubious|date=July 2024}}{{citation_needed|date=July 2024}}. Despite these security features, there are ongoing fraud concerns, particularly when debit cards are ''duped'' or ''skimmed''&nbsp;— a compromised [[automated teller machine]] or point-of-sale terminal will record the account information contained in the magnetic strip of the card, allowing for duplicate cards to be created at a later time. The owner of the card is then secretly video taped or observed entering their PIN, allowing a criminal to use duplicate cards to make fraudulent purchases.

====Interac chip cards====
In 2007, Interac announced it would be moving to [[EMV]] [[Smart card|chip card]] technology.<ref>{{cite web |url=http://www.interac.ca/consumers/chip.php |title=What is Chip Technology &#124; Interac |publisher=Interac.ca |date=31 December 2012 |access-date=18 October 2013 |archive-date=5 August 2012 |archive-url=https://web.archive.org/web/20120805220631/http://www.interac.ca/consumers/chip.php |url-status=dead }}</ref><ref>{{cite web|title=Interac Association Chip Guide|url=http://epossuppliers.com/interac-association-chip-guide/|publisher=EPOSS|access-date=22 May 2014|archive-url=https://web.archive.org/web/20160107105959/http://epossuppliers.com/interac-association-chip-guide/|archive-date=7 January 2016|url-status=dead|df=dmy-all}}</ref> The main benefit to this technology over the existing magnetic stripes is that the chips are almost impossible to copy due to high levels of encryption.

===Shared Cash Dispensing (SCD)===
Shared Cash Dispensing (SCD): [[cash]] withdrawals from any [[Automatic Banking Machine|ABM]] not belonging to a cardholder's financial institution. This Canada-specific service is similar to international systems like [[Plus (interbank network)|Plus]] or [[Cirrus (interbank network)|Cirrus]]. Virtually every ABM in Canada is on the Interac system.

===Interac e-Transfer Service===
{{Main|Interac e-Transfer}}
The Interac e-Transfer service is offered by CertaPay. It allows online banking customers to send money to anyone with an e-mail address or a cellphone number and a bank account in Canada. Prior to February 2018, this was an Interac-branded service operated by [[Acxsys|Acxsys Corporation]]. Interac e-Transfer service is designated as a prominent payment system and is subject to oversight by the Bank of Canada.<ref>{{Cite web|url=https://www.bankofcanada.ca/core-functions/financial-system/oversight-designated-clearing-settlement-systems/|title = Regulatory Oversight of Designated Clearing and Settlement Systems}}</ref>

===Interac Online===
Interac Online was a service that allowed customers to pay for goods and services over the Internet using funds directly from their bank accounts. It was an [[Online Banking ePayments]] service very similar to [[iDEAL]] in the Netherlands, [[Giropay]]<ref>{{cite web|url=http://www.giropay.de |title=Home: giropay |publisher=Giropay.de |date=18 September 2013 |access-date=18 October 2013 |language=de}}</ref> in Germany, and [[Secure Vault Payments]]<ref>{{cite web|url=http://www.securevaultpayments.com |title=Fast. Easy. Secure |publisher=Secure Vault Payments |access-date=18 October 2013}}</ref> in the United States. Because no financial information is shared with the online merchant, the Interac Online service was more secure than online credit card payments. This service, operated by Acxsys Corporation from 2005-2018 and by Interac Corporation since then until its discontinuation, was available to customers of four of the five largest Canadian banks: [[Royal Bank of Canada|RBC]], [[Bank of Montreal|BMO]], [[Scotiabank]], and [[TD Canada Trust]] by 2007.

By February 2009, Interac Online was supported by roughly 300 merchants including two large universities (for tuition payments), two major wireless carriers, provincial lottery corporations, and a wide variety of retailers. It was later adopted by Paymentwall (for payments to third-party merchants) and the Canada Revenue Agency (for income tax payments).

The service was discontinued on October 31, 2024.<ref>{{cite web |author1=Interac Corporation |title=Interac Online Decommissioning |url=https://www.interac.ca/en/interac-online-decommissioning/ |date=31 October 2024}}</ref> Prior to its discontinuation, the service steadily lost support from both merchants and financial institutions, likely due to the increasing prevalence of co-badged [[Debit Mastercard]] and [[Visa Debit]] cards.

== See also ==
*[[ATM usage fees]]
*[[White-label ABMs]]

==References==
{{reflist}}

==Bibliography==
* Interac Association (2006). [https://web.archive.org/web/20060717152738/http://www.interac.ca/en_n2_11_howitworks.html At the Merchant 2006. How it works]. Retrieved 19 June 2006, from 
* Interac Association (2006). [https://web.archive.org/web/20060721144717/http://www.interac.ca/en_n2_12_benefits.html At the Merchant 2006. Benefits]. Retrieved 19 June 2006, from 
* Interac Association (2006). [https://web.archive.org/web/20060718165146/http://www.interac.ca/en_n2_13_fees.html At the Merchant 2006. Fees]. Retrieved 19 June 2006, from 

==External links==
*{{official website}}
{{Credit cards}}
{{Interbank networks}}

[[Category:Financial services companies established in 1984]]
[[Category:Banks established in 1984]]
[[Category:1984 establishments in Ontario]]
[[Category:Financial services companies of Canada]]
[[Category:Interbank networks]]
[[Category:Payment systems]]
[[Category:Debit cards]]
[[Category:Debit card issuer associations]]
[[Category:Banking in Canada]]
[[Category:Financial services companies based in Toronto]]