The Code of Conduct for the Credit and Debit Card Industry in Canada is now in effect, Minister of Finance Jim Flaherty announced Monday.

“This Code will make fees and rates more transparent for business owners and for consumers who use credit and debit cards,” Flaherty says. “It will promote fairness, competition and choice.”

Under the Code, merchants will be:

– provided with clear information regarding fees and rates;
– given advance notice of any new fees and fee increases;
– able to cancel contracts without penalty should fees rise or new fees be introduced;
– given new tools to promote competition, and in particular, will have the freedom to accept credit payments from a particular network without the obligation to accept debit payments and vice versa.

The Financial Consumer Agency of Canada has been empowered to monitor compliance with the Code.

While most sections of the Code took effect Monday, payment card networks and acquirers have until Feb. 17, 2011 to implement several disclosure elements of the Code to allow sufficient time for them to make the necessary changes to their systems.

If necessary, payment card issuers will also have until May 17, 2011 to re-issue cards already in circulation that contravene Elements 6 and 7 of the Code, which are applicable to debit cards that have access to multiple networks.

IE