Smart Changes To Paying By Smartphone?

After much anticipation, the Canadian federal government finally announced on April 13, 2015 amendments to the Code of Conduct for the Credit and Debit Card Industry in Canada (the "Code") which, among other changes, will extend the Code to contactless payments and give merchants more rights relating to mobile payments. As previously reported by us, some of these amendments were originally proposed in October 2012 (see: http://www.blg.com/en/newsandpublications/documents/Publication_3157.pdf). However, the newly announced amendments extend further than originally anticipated.

Under the amended Code, merchants will be able to reject contactless payments for a payment card network while continuing to accept other types of payment from that network, without penalty. Merchants will also have the right to cancel contracts with acquirers if they do not pass through the full savings from reductions to interchange rates that apply to that merchant. While outside of the