Code of Conduct for Credit and Debit Card Industry in Canada

Copyright 2010, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on Financial Services, April 2010

On April 16, 2010, the federal government released the new "voluntary" Code of Conduct for the Credit and Debit Card Industry in Canada (the Code). The Code was created to address the concerns of merchants regarding some of the business practices of credit and debit card networks, issuers and acquirers. Although the Code resulted from extensive consultations with both merchant and consumer associations, it is evident from reviewing the Code that merchants are the primary beneficiaries.

The stated purpose of the new Code is to:

• ensure that merchants are fully aware of the costs associated with accepting credit and debit card payments, thereby allowing merchants to reasonably forecast their monthly costs related to accepting such payments;