The Canadian Code of Conduct – 2015 updates

Comments (0) International Online Payments, Payment Service Providers, Payments Regulation

If you are a Canadian merchant/ payment service provider/ ISO or you do or intend to do business in Canada, this one is for you!! Pleased to share our thoughts and offer a better understanding on the most important updates brought by the recent changes in the Code of Conduct for the Credit and Debit Card Industry in Canada.

The Code of Conduct – 2015 updates
The Code of Conduct was introduced in 2010 to ensure Canadian merchants were aware of the costs of accepting credit and debit cards and providing merchants with flexibility in determining what payment options to accept. The 2015 additions to the Code include:

  • Savings resulting from reduced interchange fees must be fully passed on to merchants.
  • Merchants are allowed to exit their contracts with credit card processors on 90-day notice without penalty.
  • Rules governing credit cards will be extended to the growing mobile payment field; both mobile and contactless card-based payments are to be priced equally.
    • Merchants have the right to stop accepting mobile payments with 30 days’ notice without penalty if their acquirer increases its mobile payment fees.
    • Merchants can freely choose which payment options they will accept.

Are you getting your fee reductions from your processor?
Visa and MasterCard have agreed with the Canadian Government to limit interchange fees to 1.5% of transaction value for the next five years, in effect from April 18th 2015. This brings tremendous fee reductions to Canadian retailers and, implicitly, to all Canadian consumers. The updated Code is most noteworthy for fixed-priced merchants, as these savings are not automatically passed on. Interchange fee savings may NOT be currently disclosed by their processors.

For Interchange Plus merchants these savings will be attributed automatically, but the renewed right to exit any merchant acquiring agreement without penalty means an opportunity to reevaluate their business. Merchants can more easily engage with new partners that better answer their business needs.

Payvision – full transparency and global solutions.
The Code of Conduct reinforces the core values of the Payvision business model; transparency and full disclosure. Payvision’s representatives in Canada are here to support your business growth and will always inform you about any fee reductions or the pricing model.

Payvision offers global solutions with multi-currency processing features for merchants interested in expanding their capabilities into different regions and industries. Merchants can truly “go global” without needing to establish a foreign entity, foreign bank account and foreign merchant account.

For more information about payment processing options in Canada and worldwide, please contact one of Payvision’s regional experts:

 

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