Finance Minister Jim Flaherty's proposed Code of Conduct for the credit and debit card industry is a definite step in the right direction and a step that needed to be taken with Visa and Mastercard about to enter the debit card competition.
The Retail Council of Canada has said credit card processing fees now cost merchants $4.5 billion a year. The council also estimates merchants will pay an extra $300 million to process debit cards if Visa takes 20 per cent of that market away from Interac next year.
The new voluntary Code of Conduct is intended to ensure fair business practices and ensure that merchants are:
- aware of the costs associated with accepting plastic payment;
- given increased pricing flexibility to allow the lowest-cost payment options for consumers;
- allowed to choose the payment options they'll accept.
If you want to actually look at it and see what it says rather than just read about it, here it is: Draft Code of Conduct for the Credit and Debit Card Industry in Canada.
The proposed Code of Conduct is now the subject of a 60-day consultation period.
More: Flaherty threatens card companies on proposed code (The National Post) - Reactions to the proposed Code of Conduct by Visa Canada, The Retail Council of Canada and the Canadian Federation of Independent Business.
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