Canada has something similar (Interac), but the transaction marketshare has been steadily eroding to credit cards. (Since credit cards offer credit + credit/cashback, and extra fees for paying by credit cards are very rare.)
One consequence of the flat fee is that at some retail stores, if you pay by debit, you can ask for "cash back". For example, if you buy $20 of groceries and ask for $100 cash back, the cashier will charge $120 to your debit card, you will have fully paid for your groceries, and the cashier will give you $100 in paper money as if he were an ATM.
Obviously, "cash back" is a terrible idea if the merchant allowed the customer to pay by credit card.
Cash back was/is a thing in Sweden for a long time, but I have not actually seen it used in ages, or mentioned. We simply don't use cash much these days.
