The Globe and Mail reports in its Tuesday edition that with U.S. central bank interest-rate cuts under way, Americans are set to see the cost of their credit-card debt decline. The Globe's Erica Alini writes, however, that only a few Canadians are enjoying a similar downward ride. U.S. credit cards typically have variable interest rates that move up or down along with adjustments in the Federal Reserve's benchmark federal funds rate. In Canada, by contrast, the vast majority of credit cards have fixed interest rates. Only a handful of credit cards have variable rates in this country. One example is TD Bank's TD Emerald Flex Rate Visa Card, which has a $25 annual fee, charges prime plus 4.50 per cent to 12.75 per cent, equivalent to 10.95 per cent to 19.2 per cent. However, that is not how credit-card issuers usually set rates in Canada. Those borrowing costs are usually based on factors such as a risk assessment of individual card applicants as well as potential losses across a broader pool of borrowers, market competition and overall economic conditions. Even U.S.-dollar credit cards for Canadians often have fixed interest rates. Floating rates in the U.S. are likely a product of a more competitive credit-card market.