What is FICANEX?
FICANEX® is a limited partnership formed under the laws of the Province of British Columbia. FICANEX® is the exclusive licensor in Canada of all intellectual property associated with the operation of the THE EXCHANGE® Network. FICANEX® manages the Network by licensing entitlement to use the intellectual property associated with the Network.
What is THE EXCHANGE® Network?
The Network is a full-function, national ATM network and is made up of 230 participating financial institutions (referred to generally as "members") and their ATMs. At present, the members include nine banks with the balance being credit unions and other deposit taking institutions. Customers of members are permitted to use any of the over 2,400 ATMs forming the Network to do such things as withdraw cash and make deposits, transfers and balance inquiries from their own accounts, regardless of the financial institution operating the ATM. Full-function inter-financial institution ATM banking is achieved by the Network as a result of co-operation of all members in adhering to a set of Canadian Network Operating Rules and the co-ordination of switching all Network transactions through a CSP. Each of the members must have an electronic data switching service provider (EDSSP) to drive their own ATMs and to co-ordinate Network transactions through the CSP.
Who owns THE EXCHANGE® Network?
Fiserv EFT. is the owner of certain intellectual property rights which include the rights to THE EXCHANGE® trade mark. Fiserv EFT. has granted to FICANEX® the exclusive right to use, market and sublicense the intellectual property rights associated with the operation of the Network throughout Canada. The Network is operated in the United States pursuant to a set of U.S. Network Operating Rules developed by Fiserv EFT. (US Rules). The Network is operated in Canada pursuant to the Canadian Rules which comprise the US Rules as modified by FICANEX® for Canadian purposes.
How is THE EXCHANGE® Network governed in Canada?
Each member is governed by the Canadian Rules which are administered by FICANEX®.
What are the responsibilities of FICANEX in respect of Canadian Network members?
It is FICANEX's® responsibility to ensure that there is a central switch provider (CSP) and settlement agent to facilitate transactions between individual members of the Network. Accordingly, FICANEX® continues to market the Network to new members and to establish overall operating policies.
What are the responsibilities of Canadian Network members towards FICANEX?
Primarily, adherence to the Canadian Rules and payment of license fees. The individual participants of the Network are governed by the terms and conditions of their membership agreements.
How does a transaction using THE EXCHANGE® Network work?
A customer of a card issuing member of the Network (referred to as an Issuer Member) initiates an ATM transaction at another Network member's ATM (referred to as an Acquirer Member). The Acquirer Member, after the usual approvals and safeguards from the Issuer Member, will process the transaction, including deposits, as if this transaction were a transaction done on account of the Acquirer Member. Net transactions between members are settled each day by a settlement agent. In addition to normal switching fees and settlement fees, the Issuer Member pays an interchange fee to the Acquirer Member for processing the transaction at its ATM.
What are the advantages of membership in THE EXCHANGE® Network?
As a result of participating in the Network, customers of members have access to a large full-function ATM network to conduct their banking, regardless of the number of ATMs operated by any one financial institution, thereby increasing access to services for all member customers.
Who bears the risk for the operation of THE EXCHANGE® Network in Canada?
Security and fraud safeguards are built into the system by the security measures imposed by each of the members and their own customers, including transaction limits. As a result, risk and responsibility for the operation of the Network is spread amongst the participating members. The obligations and requirements of each of the members to one another, including the assessment of liability for transactions, is governed by the Canadian Rules.
What are the requirements or criteria for membership in THE EXCHANGE® Network in Canada?
An applicant must be a deposit taking financial institution within Canada. Based upon the number of cardholders, the financial institution must add deposit taking ATMs to the Network. Criteria for membership in THE EXCHANGE® Network are set forth in the Canadian Rules.
Are members of THE EXCHANGE® Network required to pay membership fees?
Yes.
Who pays the switch fees, Issuer Members (i.e. the financial institution that has issued the debit card used by its holder at an ATM) or Acquirer Members (i.e. the financial institution which owns the ATM used by a debit card holder)?
The Acquirer and Issuer Members pay switch fees.
What are the installation or certification fees?
The installation and certification fees are determined by the member's EDSSP and are dependent on the time and effort required per individual FI.
Does THE EXCHANGE® Network allow surcharging?
No. No Acquirer Member (i.e. the financial institution which owns the ATM used by a debit card holder) has the right to assess an additional fee (surcharge) on any transaction performed by an Exchange cardholder on an ATM displaying THE EXCHANGE® mark.
What are the applicable interchange rates on transactions?
Within Canada there is a per transaction interchange fee of $0.45 per withdrawal, transfer, PIN change/selection, and a $0.75 per deposit transaction paid by the card issuer. $0.10 of each interchange fee is paid to Ficanex, the acquirer (ATM owner) receives the remainder. The interchange rate charged at US Exchange ATMs is $0.42 at an on-premise ATM and $0.52 at an off-premise ATM.
Who does the settlement for THE EXCHANGE® Network members in Canada?
Central 1 Credit Union or Caisse centrale Desjardins are the settlement agents for the network. A settlement fee is charged per transaction. A member may be required to satisfy the credit requirements of the designated settlement agent, which may include the posting of security.
When does settlement occur?
This depends on who the client is. For a direct clearer settlement can occur on a "same day" basis.
How is interchange paid by THE EXCHANGE® Network issuing members to the acquiring members?
Via the CSP/EDSSP daily settlement process.
How are Acquirer Members guaranteed payment for accepting deposits of another FI in Canada?
Members are required to follow the specified Canadian Operating Rules. As long as an Acquirer Member conforms to the rule, the liability rests with the card issuer.
How would an interested, qualifying applicant receive information regarding membership in THE EXCHANGE® Network?
If a financial institution is interested in becoming a member of the Network, upon signing a confidentiality agreement with FICANEX® (in the required form), the financial institution will be delivered a package of information containing, among other things, the form of limited partnership agreement, membership agreement and subscription form for its review.
How can other questions on FICANEX and the Network be answered?
For further information regarding FICANEX® and THE EXCHANGE® Network, interested, qualifying applicants can contact Linda Matheson of FICANEX® at (604) 455-0732, or email: info@the-exchange.ca.
Please note that the receipt of additional information regarding FICANEX® and/or the Network may be subject to the signing of a confidentiality agreement with FICANEX® (in the required form).