19 October 2017
Register now

Canada plans payment card code of conduct

13 October 2009  |  6458 views  |  0 credit card

Canada's finance minister Jim Flaherty is preparing to introduce a voluntary code of conduct covering the credit and debit card market as the country gets ready for US giants Visa and MasterCard to cross the border.

According to local press reports, the code of conduct is expected to be released within weeks following negotiations with industry players. One of the most controversial issues it is expected to tackle is priority routing of debit transactions over Visa's and MasterCard's networks.

Canada's non-profit national payments association Interac currently charges a flat interchange fee for processing payments over its network but it is about to face competition from Visa and MasterCard which are both looking to break into the country's market.

The association has been in talks with the country's competition bureau about becoming a for-profit organisation in a bid to fight off the US firms.

According to press reports, Visa plans to let customers choose at the point of sale whether their debit transaction runs over its network or Interac. Meanwhile MasterCard, says that if Maestro debit is on the merchant's terminal, the transaction will be priority routed over its network.

Consumer and retail groups have argued that this will freeze Interac out, leading to higher fees.

The code of conduct is also expected to cover the use of cards that have both debit and credit functions as well as improved transparency of rates and fees.

Meanwhile, Visa is planning to use the Winter Olympics in Vancouver as a set-piece showcase for its contactless debit card in Canada.

The firm, which is a major Games sponsor, has been signing up merchants in the Canadian Olympic village to adapt their terminals to accept PayWave transactions.

Jim Flaherty set to deal debit card set of rules - Toronto Star

Visa to unveil contactless debt card at games - Toronto Star

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Interac partners with Inside for Canadian contactless chips

Interac partners with Inside for Canadian contactless chips

15 July 2009  |  5438 views  |  0 comments
Canadian authorities to probe debit, credit card fees

Canadian authorities to probe debit, credit card fees

09 March 2009  |  7610 views  |  1 comments
Canada begins Chip and PIN roll out

Canada begins Chip and PIN roll out

28 October 2008  |  10786 views  |  0 comments
Canada's Interac looks to go for-profit - report

Canada's Interac looks to go for-profit - report

08 September 2008  |  8060 views  |  0 comments
MasterCard trials PayPass in Canada

MasterCard trials PayPass in Canada

28 May 2008  |  8618 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Register nowvisit www.fivedegrees.nlvisit www.niceactimize.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15824 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8958 views comments | 16 tweets | 23 linkedin
satelliteGates Foundation backs Ripple collaboratio...
8052 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
7148 views comments | 9 tweets | 17 linkedin
Santander InnoVentures leads $6m funding round for Mexico's ePesosSantander InnoVentures leads $6m funding r...
6289 views comments | 6 tweets | 3 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job