Finance minister proposes code of conduct for credit-and debit-card companies
ByFrom - THE CANADIAN PRESS
OTTAWA - Finance Minister Jim Flaherty is proposing a code of conduct for credit-and debit-card companies that he says will “level the playing field” for consumers and small businesses alike - but not before the Christmas shopping season.
The code, intended to promote fair business practices and ensure merchants and consumers clearly understand the costs and benefits of credit and debit cards, won’t be finalized before early next year.
It aims to provide merchants with more pricing flexibility so consumers can choose the best payment option, Flaherty said, and it would allow merchants to choose which payment options they accept.
“The proposed code is based on ongoing discussions with merchant and consumer associations, debit-and credit-card networks, payment processors and credit-card issuers across Canada,” Flaherty said Thursday.
“The proposed code would encourage choice and competition in the credit and debit market for the benefit of consumers and merchants. It would help ensure accountability and prevent unfair practices.”
Flaherty is putting the draft proposal out for input from stakeholders over the next 60 days and he said he expects the code will be made final early in the New Year.
Among other elements of the code:
-It would require credit-and debit-card companies to give merchants at least 90-days’ notice of changes to transaction fees.
-It would allow merchants to cancel contracts with card issuers without penalty after notification of fee changes.
“We have been consulting on this for some months and these are not simple issues relating to debit and credit cards,” Flaherty said.
“They’re very important issues for consumers in Canada; they’re very important issues for business in Canada - particularly small merchants as we go into the Christmas shopping season.”
He said the government will make final revisions and additions to the code based on the feedback it receives, “then quickly move to bring the code into force as soon as possible early in the new year.”
Recently released regulations also protect credit-card users by making clearer and more transparent information available to them, he added.
