Whatever Happened To Interac Online, Anyway?
Written by D.L. McCracken   
Tuesday, 29 November 2005
When some of the major Canadian banks released the news this past Spring that they would be incorporating a feature which would allow their clients to shop online using their debit cards, the stories were met with reverberative sighs of contentment and joy from so many online shopping-wannabes who for various reasons had been barred from spending their money online simply because they did not possess the international currency known as Visa or Mastercard.

 

Interac Online would allow credit card-less individuals the privilege of participating in the progressively popular and highly lucrative activity of online shopping. Up until financial institutions such as RBC and Scotiabank decided to take the plunge and offer their customers the opportunity of purchasing goods and services online using only their debit cards, online merchants were missing out on millions of dollars in revenue that could have been generated from a segment of society that were barred from spending their money online simply because they chose not to own a credit card.

According to a Department of Finance report in June of this year, "Research conducted for INTERAC service participants in 2004 by The Strategic Counsel indicated that 73% of respondents were interested in a debit option for purchases on the Internet and over 40% of respondents said they were very interested. The complete report can be found at http://www.fin.gc.ca/consultresp/06Rev_16e.html

As a result of the above report, three major financial institutions implemented the Interac Online option for their existing customers - the Royal Bank of Canada (RBC), Scotiabank and TD Canada Trust. BMO Financial Group is apparently interested but has not as yet signed on.

By visiting the webpages for the three participating banks, one will find a detailed page for their existing clients on how to shop online using Interac Online. So far so good.

Well actually, that seems to be the end of the good part. According to www.interaconline.com, "offering Interac Online is a payment option available to all online merchants that do business in Canada and have a relationship with a Canadian debit card processor. However, it is up to each merchant to decide which payment options they want to offer to their customers." A quick search of the more popular online merchants proved to be futile in regards to using Interac Online. Apparently most online merchants have decided that adding a debit payment option is just not high on their list of priorities.

Ultimately, there are a grand total of 7 merchants listed as offering Interac Online:

  • Nexopia - Online Community
  • The Source by Circuit City - Consumer Electronics
  • CompuSmart - Computer Hardware/Software
  • B Young Baskets - Flowers/Cards/Gifts
  • Canadian Red Cross
  • Citizens Centre for Freedom and Democracy
  • La Senza Lingerie - Apparel

Not exactly your typical online mall, is it. It is unclear what one would purchase from an online community and a freelance political website and there isn't one person on my Christmas list who wants more than anything, a Nexopia membership. On the bright side however Interac Online offers one the option of donating to a notable charity and if you're not too tired after all that online spending, you can pop over to La Senza and pick up a nice pair of fluffy slippers.

Which begs the question: why are the big ticket online merchants ignoring an obvious huge share of the shopping market? We're here and our bank accounts are bursting at the seams as we wait for the big guys to make up their minds about Interac Online. HELLO...! You do know that debit card transactions are a guarantee of cash, right? Even more so then credit cards? So why are you guys over at Amazon.ca, Chapters.ca and everyone else who seems to worship the Visa card, why are you ignoring the rest of us?

I'm beginning to get the feeling that you don't want us. 'Us' being the potential customers with a savings account load of cash just waiting for your virtual doors to open and welcome us with the same open arms you offer the rest of the online shopping world.

So what's it going to be? Are you online merchants going to get with the program or are you going to completely alienate a huge group of people with a lot of disposable income burning a hole in their pockets?

Can you get back to me on that as soon as possible? I've found a few really neat items that I'd love to pick up for Christmas gifts and as we all know, the old Santa-clock is ticking..

D.L. McCracken can be reached by friend & foe and even the occasional online merchant by sending an email to This email address is being protected from spam bots, you need Javascript enabled to view it