Financial firms should have to adhere to transparency and fairness requirements for mobile payments, says the federal Department of Finance.
Finance is proposing to extend the existing code of conduct requirements for the credit card and debit card industry to mobile payments, such as those made by smartphones. It released a proposed addendum to the code for public consultation on Tuesday. The addendum aims to ensure that the code’s principles of transparency and fairness are upheld for payments that access debit or credit accounts through a mobile device at the point of sale.
The existing code of conduct came into effect in August 2010, and is designed to help merchants and consumers clearly understand the costs and benefits of credit and debit cards.
The proposal to extend application of the code to mobile payments comes in response to recommendations from the Task Force for the Payments System Review, which was released in March.
“As mobile payment options begin to grow more rapidly in Canada, our government wants to ensure that the principles of transparency, fairness and competition are respected,” said Ted Menzies, minister of state (Finance).
“While we support new and convenient payment options, small businesses and consumers should not be punished with new hidden fees or undisclosed conditions,” he added.
“Today’s actions are welcome. They show that the code can evolve, and will address some of the reforms needed to continue to level the playing field between payments operators and small business,” said Corinne Pohlmann, vice-president, national affairs for the Canadian Federation of Independent Business.
The proposed addendum is being circulated for a 60-day comment period.