A co-badged debit card is one that can access multiple networks for debit transactions. For example, a co-badged debit card may have access to the Interac network and a competing payment brand’s network for payments that come directly from your bank account. These cards can be recognized by the display of both the Interac logo and the logo of the competing payment brand on the front of the card. While payments will come directly from your bank account, the transactions can take place over the Interac network or the competing payment network depending on the type of transaction.
In Canada, competing services from different payment networks may not be offered on the same debit card. This is one of the provisions of the Code of Conduct for the Credit and Debit Card Industry in Canada, introduced by the federal government to promote healthy competition and fair business practices between players in the payments industry. Generally, it means that financial institutions have to choose which payment brand will be used for each type of domestic payment transaction (e.g., in-store merchant point-of-sale, online, etc.) for cards they issue to their customers.
When a co-badged debit card is presented for purchases at retail locations in Canada where the Interac logo is displayed, the payments will be processed over the Interac network. Financial institutions have generally chosen the Interac payment brand for point-of-sale transactions. Contactless payments (i.e., transactions where you can hold the card to the terminal and do not need to enter your PIN ) will also be processed over the Interac network as Interac Flash transactions. Interac Flash is the contactless enhancement of Interac Debit. This functionality on co-badged debit cards can be recognized with the display of a wave symbol , usually on the front of the card.
Generally, co-badged debit cards in market today cannot be used for making online purchases using Interac Online. Some financial institutions have chosen another payment network for online debit transactions, and consequently, their customers with a co-badged debit card will not have access to the Interac Online service. For more information about the services accessible with a co-badged debit card, contact your financial institution directly.