The Code of Conduct for the Payment Card Industry in Canada was rewritten effective October 30, 2024, and oversight sits with the Financial Consumer Agency of Canada. It gives merchants several concrete rights. In our experience almost nobody uses them, mostly because nobody mentions they exist.
A 70 day window to leave, penalty free
When a processor passes on a new or increased fee, the notice it sends you must state the previous and the new amounts, say whether the change originated with the card network, the acquirer or a downstream processor, and specify how much of it is being passed to you.
It must also tell you that you may exit your agreement without penalty within 70 calendar days of the change taking effect, and it must state the date that window expires.
Read that again if you have ever been told you're locked in. A fee increase opens a door. The door closes 70 days after the change takes effect, and the notice itself is required to tell you when.
If your agreement has no fixed term or no cancellation penalty, the notice must remind you that you can exit without penalty at any time.
90 days notice of increases
You are entitled to a minimum of 90 days notice of any new fee or fee increase related to credit or debit card transactions, and of any reduction in applicable interchange rates that should be passed through to you.
What your monthly statement must show
- The effective merchant discount rate for each type of card from each network you accept.
- Interchange rates and all other rates charged to you by your acquirer.
- The number and volume of transactions for each payment type.
On blended or flat rate pricing, you are entitled to the per transaction rate inclusive of percentage and per item charges, no less often than monthly. This is the raw material for the calculation in our effective rate guide.
Renewals cannot roll over indefinitely
Fixed term agreements can only be extended in six month intervals, which limits the automatic multi-year rollover that used to catch operators who missed a notice window. Before you sign, you are entitled to a cover page summarising the key elements: cost disclosures, contact information, cancellation terms, and how complaints are handled.
Your right to offer discounts is protected
The Code expressly protects a merchant's ability to offer discounts for different methods of payment, and states among its purposes that merchants should have increased pricing flexibility to encourage consumers to choose the lowest cost payment option.
This is the provision our Canadian program is built on. One posted price, which is the card price, with a discount at the point of sale for customers paying cash or Interac debit. Interac debit receives the same discount as cash, nobody pays above the posted price, and the discount is marked at the point of sale as the Code requires.
What we'd suggest doing
Go and find the last fee change notice your processor sent you. Check the date the change took effect. If it was inside the last 70 days, you have more room than you think. If it wasn't, at least you now know what the next notice is required to contain, and what it opens.
Know your number before anything changes.
Send us one recent processing statement and we'll return your true effective rate, broken out for credit and debit, within one business day. No cost, no obligation. If you're already in a good deal, we'll tell you that too.
Get your free statement audit