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ARTICLE · 24 JUNE 2019

Payments Canada Proposes New Rule For Debit Payments

McCarthy Tétrault
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Payments Canada recently announced a proposal for a new rule (the Proposed Rule) aimed at increasing the availability of point-of-service (POS) debit card acceptance in Canada.

CanadaTechnology
CyberLex Blog
CyberLex Blog
Ana Badour
Ana Badour
Nancy J Carroll
Nancy J Carroll
Arie Van Wijngaarden
Arie Van Wijngaarden
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Payments Canada recently announced a proposal for a new rule (the Proposed Rule) aimed at increasing the availability of point-of-service (POS) debit card acceptance in Canada. The underlying goal of the Proposed Rule is the transition towards digital payments and decreasing reliance on cash transactions. In conjunction with the Proposed Rule, Payments Canada released a consultation paper on Delayed Authorization POS which is open for feedback until June 23, 2019.

Traditional Electronic Payments 

In a traditional payments system, provision of service is predicated upon a debit or credit card transaction being duly authorized. This requires a cardholder to present the payment card and provide the card's details (PIN) in the merchant's checkout system. This system forwards the card's details to the merchant's bank who is responsible to obtain the funds for the merchant's account. This involves using a payment processor to contact the cardholder's bank, which assesses

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