The Canadian Code of Conduct was effected in 2010 to uphold desirable business practices and make certain Canadian merchant account holders as well as consumers identify with the costs and advantages of handling credit and debit cards.
Here is a recap of the benefits you can enjoy from the Code plus a few new items you should be aware of.
- 90-day/3-Month Notice on Any Fee Increase
The code demands that for any unexpected fee increase by the processors or card brand (like MasterCard), the merchant must be issued a 90-day notice. On top of that, the entrepreneur can willingly call off their accounts without the fear of facing penalties; but this must be done within 90 days after the declaration of the rate change. Nevertheless, be warned that this law doesn’t apply for equipment leases.
- Effective Processing Rate
All processors are expected by law to put on view the effective payment processing rate for every card brand (both credit and debit) in their monthly reports. The effective rate is the result of all charges related to a credit card brand, i.e. qualified & nonqualified fees, interchanges charges, card-brand charges and per transaction cost divided by the gross total a merchant …Read More