Search results
Oct 28, 2024 · The new Code defines “Payment Card” to be digital and physical cards from an issuer that provide the ability for debit, credit or prepaid transaction that is linked to a cardholder account. Expanded Scope for Related Service Contracts : New rules apply to certain “Related Service Agreements” between a merchant and a Downstream Participant for payment processing (and related) services.
Nov 6, 2024 · The new Code of Conduct for the Payment Card Industry in Canada governs payment card network operators (PCNOs), including Mastercard, Visa, Amex, Interac, Discover, and UnionPay, and most of the updated provisions took effect on October 30. The updated code will be implemented in phases, with full enforcement by April 30, 2025.
- Purpose
- Scope
- Definitions
- Disclosures and Communications
- Policy Elements
- Code Complaint Handling Process
- Oversight and Reporting
- Compliance Requirements
- Review
The purpose of the Code of Conduct for the Payment Card Industry in Canada (the “Code”) is to demonstrate the Payment Card industry’s commitment to: 1. Ensuring that merchants are fully aware of the costs associated with accepting Payment Cards, thereby allowing merchants to reasonably forecast their monthly costs related to accepting such payments...
The Payment Card Network Operators (“PCNOs”) that choose to adopt the Code will abide by the policies outlined below and require compliance by their Participants (e.g., Issuers, Acquirers, and their Downstream Participants, including but not limited to payment processors, payment facilitators, and aggregators). The Code will be incorporated, in its...
Acquirer: an entity that enables merchants to accept payments by Payment Card, either by way of a direct contractual relationship with a PCNO (e.g., as an acquiring entity) or via sponsorship by an acquiring entity (e.g., as an agent of an acquiring entity). Downstream Participant: any person or entity that: 1. has either a direct or indirect relat...
All disclosures, notices, and communications required under the Code, whether provided in writing or digitally, must be presented in a clear, simple, and non-misleading manner. To increase merchant understanding of payment processing, Acquirers and Downstream Participants should make information easily available for merchants on their websites (e.g...
1. Transparency and Disclosure by Acquirers and Downstream Participants
Acquirers and Downstream Participants must ensure that merchant agreements and statements related to the provision of Card processing include a sufficient level of detail, are readily available, and are easy to understand.
1a. Card Processing Applications
To allow merchants to easily compare pricing across different providers, Card processing applications/quotes/proposals provided by Acquirers and/or Downstream Participants must include the “Cost per Transaction Disclosure” (see Annex B) and “Disclosure of Fees”(see Annex C). The data and rationale used to populate the “Cost Per Transaction Disclosure”, such as Card mix and volumes, must be provided to merchants to ensure that merchants can obtain more easily comparable quotes. Any promotional...
1b. Merchant Agreements
All merchant agreements that include Card processing must include a cover page, or if sent electronically a separate document(s), containing the following: 1. Summary of the Key Elements of the Agreement(see Annex A); 2. Cost per Transaction DisclosureFootnote 2 (see Annex B); and 3. Disclosure of Fees(see Annex C). Merchants may provide express consent to their Acquirer or Downstream Participant to not receive the above disclosures if the agreement has been negotiated between the merchant an...
PCNOs, Acquirers, and Downstream Participants must ensure that: 1. merchants have access to a clear, simple, and transparent complaint handling process, provided by their Acquirer and/or Downstream Participant, that investigates merchant complaints of Code noncompliance in a timely manner. Acquirers may delegate responsibility for this complaint ha...
The FCAC is responsible, under the Financial Consumer Agency of Canada Act,for monitoring the implementation of the Code by the PCNOs, monitoring the public commitments made by PCNOs to implement the Code into their commercial practices, and promoting public awareness of the PCNOs’ obligations under the Code. By adopting the Code, PCNOs agree to pr...
For their Acquirers and Downstream Participants, PCNOs must: 1. Establish and implement measures, controls, and tools to prevent non-compliance, monitor the market conduct of their Participants, and take appropriate enforcement action(s); and 2. Require their Participants to comply with the Code by implementing said measures, controls, and tools. O...
The Department of Finance shall assess three years after the Code’s Effective Date whether a review of the Code is warranted to ensure the Code continues to reflect market conditions and meet its policy intent. The Department may also launch a review at any time. Technical changes to the Code may be made at any time. Any modifications or updates to...
Released in 2010, the Code was developed to promote merchant choice, transparency and disclosure, and fairness in the credit and debit card market. It helps to ensure that merchants and consumers understand the costs and benefits associated with credit and debit cards. The major payment card networks, acquirers and issuers are signatories to ...
4 days ago · The Code of Conduct provides certain rights to merchants and is relevant for all entities that issue payment cards or facilitate payment card acceptance in Canada. Significant changes to disclosure requirements, notification periods and complaints-handling procedures are being introduced in a two-phase rollout: October 30, 2024, and April 30, 2025.
Filing a complaint. The Code of Conduct for the Payment Card Industry in Canada (the Code) was introduced in 2010. All major payment card network operators (PCNOs) in Canada have agreed to the Code. They are American Express Canada, Discover, Interac, Mastercard Canada, Visa Canada and UnionPay. The Code was revised and updated in 2015 and 2024.
People also ask
What is the Code of Conduct for payment card processing?
What is the Code of Conduct for the payment card industry in Canada?
What is the Code of conduct and who does it apply to?
What are merchants' rights under the payment card code?
What are the requirements for disclosures and notices under the code?
What information should a payment card service provider disclose?
conduct practices of all merchant focused agents, registered by acquirers with the payment card networks, in the context of the Code.2 The payment card networks will report the results of these reviews to the Financial Consumer Agency of Canada Policy Elements 1. Increased Transparency and Disclosure by Payment Card Networks and
