Canadian Merchant Account— Know Your Code of Conduct?

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

Valuable Advice for Buy to Let Property Investors

Investing in rental property is always an attractive option. The thought of a continuous steady stream of passive income and the security it can provide proves vital to investors. To take advantage of this opportunity, you first need to carry out exhaustive due diligence to assess all the risk factors involved in the market. Identify a particular area you want to target and drive around to see the occupancy rates of property on the ground. Talk to property managers who serve that market to identify key trends that will inform your decision.

Look at the classified rental section of the local papers serving the area to get an idea of whether the market is ideal. If advertisers of rental property are offering rent-free periods as part of the package, it might indicate a soft market with fewer tenants. Investigate how the local weather patterns affect occupancy rates. Do people flock to the area in a particular season and leave during others? Acquire data for the target area to find out which part of town has consistently performed better or at least on par with the long-term average performance metrics.

Study the demographic makeup of the tenants in the area to …

Read More