Advocacy & Policy
National: Debit and Credit Card Fees
Member Notice: Government Moves One Step Closer To Regulating Canadian Payments MarketRCC recommendations included in Payment Card Network Act
March 30, 2010
Update:
Yesterday in the House of Commons, the federal government introduced the Payment Card Network Act. The Act expands on measures announced in the federal budget earlier this month to rein-in the practices of credit card companies, processors and banks regarding the fees charged to merchants for debit and credit card acceptance.
Following the recommendations of Retail Council of Canada (RCC) and its StopStickingItToUs coalition, the Act provides the Minister of Finance with the legislative powers to regulate the Canadian payments market. This legislation illustrates Finance Minister Flaherty's continued commitment to regulate the conduct of the credit card companies, banks and processors if they do not adhere to the forthcoming voluntary code of conduct for Canada's payments market. Though RCC understands the government's push for voluntary measures as a first step, our coalition has continued to assist in setting the groundwork for future government regulations in light of card company practices seen in other countries around the world.
The Act also outlines amendments to the Financial Consumer Agency of Canada (FCAC) mandate, empowering them to monitor compliance with the voluntary code of conduct, once finalized. Strict FCAC oversight of code of conduct compliance was a key recommendation put forward by RCC and its coalition in a submission to the Department of Finance during consultations on the draft code. The Payment Card Network Act goes even further, outlining possible fines of up to $200,000 for card companies, processors and/or banks that are found in violation of its provisions.
While other industry associations have maintained that voluntary measures are enough to guarantee transparency, accountability and merchant choice in the payments market, Retail Council of Canada (RCC) has fought on your behalf to regulate the card companies, processors and banks, and ensure strict oversight. The announcement of this Act is a strong step forward in RCC's campaign to create a robust regulatory framework to protect merchants and consumers in Canada's debit and credit card market.
