We study the interactive channel capacity of an ε-noisy channel. The interactive channel capacity C(ε) is defined as the minimal ratio between the communication complexity of a problem (over a non-noisy channel), and the communication complexity of the same problem over the binary symmetric channel with noise rate ε, where the communication com- plexity tends to infinity. Our main result is the upper bound C(ε) ≤ 1-Ω (√H(ε) ) : This compares with Shannon's non-interactive channel ca- pacity of 1 - H(ε). In particular, for a small enough ε, our result gives the first separation between interactive and non- interactive channel capacity, answering an open problem by Schulman . We complement this result by the lower bound C(ε) ≥ 1-O (√H(ε) ) ; proved for the case where the players take alternating turns.