by Matt Rej
Mastercard just introduced a brand-new program that gives certain merchants discounts at the interchange level. It’s called the Underpenetrated Verticals Program, and it’s only available to merchants in Canada.
The program went into effect on May 1, 2026 and currently expires on July 31, 2027.
This still gives you a full year to take advantage of these savings, which can be significant depending on your volume.
I was surprised this isn’t getting more attention. So I compiled everything you need to know about the program, qualification criteria, rates, and savings below.
How to Qualify for Mastercard’s Underpenetrated Verticals Program
The qualification criteria for this program is pretty strict. All of the following must apply:
- You must have an eligible MCC code (full list below).
- Merchants must be new to accepting Mastercard.
- Cards must be issued in Canada.
- The acquiring bank must also be in Canada.
Again, this is a Canada-only program. So if your processor/acquirer isn’t based in Canada and the transaction isn’t coming from a Canadian-issued credit or debit card, you won’t qualify.
But the requirement that ends up excluding most merchants is the second bullet. According to Mastercard, this program only applies for merchants that are “newly accepting Mastercard payments.”
This basically only applies if you just opened a new merchant account this year. Or if your current merchant account didn’t have you set up to accept Mastercard payments (which is rare, but possible).
Businesses Eligible for MC Underpenetrated Verticals Pricing
Assuming all of the above criteria is met, only the MCC codes listed here are eligible for reduced interchange rates through this program.
Charity
- 8398 – Charitable Organizations and Social Services
- 8661 – Religious Organizations
Education
- 8211 – Schools (Secondary and Elementary)
- 8351 – Child Care Services
Healthcare
- 8021 – Dentists and Orthodontists
- 8050 – Nursing and Personal Care Facilities
Home Improvement
- 0780 – Landscaping and Horticultural Services
- 1520 – Residential Building General Contractors
- 1711 – Heating, Plumbing, and Air Conditioning Contractors
- 1731 – Electrical Contractors
- 1740 – Masonry, Stonework, Tile, and Insulation Contractors
- 1750 – Carpentry Contractors
- 1761 – Roofing, Siding, and Sheet Metal Work Contractors
- 1771 – Concrete Work Contractors
- 1799 – Special Trade Contractors (not classified elsewhere)
Professional Services
- 5960 – Direct Marketing, Insurance Services
- 6300 – Insurance Sales, Underwriting, and Premiums
- 6513 – Real Estate Agents and Rental Managers
- 7392 – Consulting, Management, and Public Relations Services
- 8111 – Attorneys and Legal Services
- 8999 – Professional Services (not classified elsewhere)
Mastercard Underpenetrated Verticals Interchange Rates (Effective May 2026)
Here’s what Mastercard is offering merchants across each transaction type and card tier. I also included the standard interchange rates in parentheses for comparison.
Card Present EMV
- Core — 0.42% (vs. 0.92%)
- World — 0.72% (vs. 1.22%)
- World Elite — 1.06% (vs. 1.56%)
- World Legend — 1.40% (vs. 1.95%)
Digital Commerce
- Core — 1.17% (vs. 1.67%)
- World — 1.40% (vs. 1.90%)
- World Elite — 1.63% (vs. 2.13%)
- World Legend — 1.75% (vs. 2.23%)
Standard
- Core — 1.46% (vs. 1.96%)
- World — 1.69% (vs. 2.19%)
- World Elite — 1.92% (vs. 2.42%)
- World Legend — 2.04% (vs. 2.53%)
Contactless
- Core — 0.42% (vs. 0.92%)
- World — 0.72% (vs. 1.22%)
- World Elite — 1.06% (vs. 1.56%)
- World Legend — 1.40% (vs. 1.95%)
SecureCode / 3DS
- Core — 1.00% (vs. 1.50%)
- World — 1.20% (vs. 1.70%)
- World Elite — 1.40% (vs. 1.90%)
- World Legend — 1.53% (vs. 2.03%)
Charity
- Core — 0.42% (vs. 0.92%)
- World — 0.72% (vs. 1.22%)
- World Elite — 1.06% (vs. 1.56%)
- World Legend — 1.15% (vs. 1.65%)
Unsecure Card Present
- Core — 0.72% (vs. 1.22%)
- World — 1.02% (vs. 1.52%)
- World Elite — 1.36% (vs. 1.86%)
- World Legend — 1.70% (vs. 2.25%)
Refund (Card Present)
- Core — 0.25% (vs. 0.55%)
- World — 0.43% (vs. 0.73%)
- World Elite — 0.64% (vs. 0.94%)
- World Legend — 0.84% (vs. 1.17%)
Refund (CNP)
- Core — 0.70% (vs. 1.06%)
- World — 0.84% (vs. 1.20%)
- World Elite — 0.98% (vs. 1.34%)
- World Legend — 1.05% (vs. 1.43%)
Other
- Standard Debit — 0.30% (vs. 1.15%)
- Utilities — $0.10 CAD (no change)
- Recurring Payments Debit — 0.30% (vs. 0.60%)
- SecureCode / 3DS Debit — 0.30% (vs. 1.00%)
- Charity Debit — 0.30% (no change)
- Commercial Standard (SME & Prepaid) — 1.50% (vs. 2.00%)
- Commercial Standard World Elite for Business — 1.75% (vs. 2.35%)
- Commercial Charity — 1.30% (vs. 1.80%)
How Much Can You Save With Mastercard’s Underpenetrated Vertical Program?
For Canadian merchants newly accepting Mastercard payments, the savings can be significant.
Most eligible merchants will see a consistent 50-basis-point reduction on consumer credit card transactions regardless of card tier. Debit card savings are even more significant, as Mastercard’s standard debit interchange category drops from 1.15% to 0.30% under the program. That’s an 85 bps discount, which adds up fast at any real volume.
Here’s what those savings look like:
- Consumer credit savings are nearly uniform at a 0.50% discount across the board.
- Standard debit offers the single largest reduction in the program at 0.85% in savings.
- Commercial card transactions save 0.50% to 0.60% depending on card type, with World Elite for Business offering the steepest discount.
- Refunded transactions save 0.30-0.38%, which is less than average but still benefit from the program.
- SecureCode / 3DS debit transactions drop from 1% to 0.30% (a 70 bps reduction) for merchants processing recurring or authenticated debit payments.
- Across all transaction types excluding edge cases, eligible merchants save an average of 0.52% per transaction.
To put those numbers into perspective, let’s look at some examples of three different business types at realistic annual volumes.
Example 1: Dental Practice (MCC 8021)
Small dentist offices processing $400,000 per year in Mastercard volume would save roughly $2,000 annually at 0.50%. A larger, multi-location orthodontist doing $2 million in Mastercard volume would save $10,000.
Example 2: Roofing Contractor (MCC 1761)
A residential roofing company with a small crew handling 80-100 jobs per year may process $750,000 per year in Mastercard transactions. This can translate to about $3,750 in annual savings under the program. High-ticket transactions mean fewer swipes but larger sale sizes, which makes each percentage point saved even more impactful.
Example 3: Consulting Firm (MCC 7392)
Let’s say a consulting firm processes $1 million in Mastercard volume every year, with a mix of both in-person and digital transactions. At this volume, they can save $5,000 annually on Mastercard interchange, with additional savings on recurring debit transactions.
The One Catch Your Processor Probably Won’t Tell You
None of this matters if you’re on a flat-rate or tiered pricing model. To actually see these savings on your account, you need to be on interchange-plus (IC+) pricing.
Under a flat-rate or tiered structure, your processor will just pocket the difference between what Mastercard charges them and what they charge you. So any interchange reduction from this program will go straight to your processor’s margin.
If you’re not sure what pricing model you’re on right now, just check your merchant statement. If you don’t see line items for interchange and assessments broken out separately, you’re almost certainly not on IC+.
You need to contact your processor to switch the way you’re billed. And moving to IC+ will result in even more savings beyond the Underpenetrated Verticals program. You’ll save on every card type, and those savings won’t have an expiration date.
Final Thoughts
Mastercard’s Underpenetrated Verticals Program is one of the most unique interchange programs I’ve ever come across. While many merchants aren’t eligible, those who are can save real money between now and July 31, 2027.
Don’t leave that money on the table. This can just be one of several different interchange optimization strategies you use to save money on credit card processing.
If you need help determining whether you qualify or whether your processor is correctly passing through those savings to your account, just contact our team here at MCC for a free audit.