New Credit And Debit Card Code On The Way

The acceptance of Visa, MasterCard and Interac cards as methods of payment is extremely popular with merchants all over Canada. And why wouldn’t it be? These days, Canadian consumers are using plastic to pay for items and services more than ever before. In fact, it’s quite surprising to walk into a store in this country that does not except either credit or debit payments.

As a QMI Agency report on The Toronto Sun’s website indicates today: “Debit transactions now account for 60% of all card payments in Canada.” So naturally, it would make sense for any merchant to begin a relationship with a processor if one has not done so already.

Right now, as a matter of fact, may just be the best time to start accepting Visa, MasterCard and Interac cards as “all of Canada’s major credit and debit companies as well as payment networks and processors have signed on to the federal government’s voluntarily code of conduct.”

Today’s QMI article reveals Finance Minister Jim Flaherty’s announcement that The Code of Conduct for the Credit and Debit Card Industry in Canada will be implemented officially as of August 16, 2010.

Originally introduced in April after several months of debate on how to regulate the credit card industry, the new code intends to make fees and rates practically undetectable by both business owners and consumers who either accept or use the cards as methods of payment.

Said Flaherty: “This is an important step forward for merchants and consumers. I am particularly pleased that we were able to work constructively with industry to launch this code voluntarily and thereby avoid imposing a new regulatory burden on businesses.”

As well, the new code of conduct guarantees those who cancel their contracts with card issuers will be able to do so free of penalties in the event that rates increase. In addition, retailers will be granted the ability to accept credit card payments from specific networks without being forced to also accept that network’s debit cards.

Essentially, the code will implement a policy that protects issuers and consumers from a potential monopoly on the credit and debit card industry by any one company. Of course, there are a number of credit and debit card issuers out there, and consumers are no strangers to swiping the particular cards of their choice to buy items.

Therefore, it is wise for business owners to have a relationship with a processor that will allow them to accept these cards in their stores. Not to mention, the acceptance of Visa, MasterCard and Interac payments in your store brings you one step closer to being eligible for a merchant cash advance!