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Canadian Code Of Conduct Associated With Credit And Debit Card Industry
The Canadian code of conduct had come into effect in 2010. The main objective behind it is to promote the smooth and proper business practices. Moreover, it is designed to ensure that customers as well as merchants clearly understand the benefits and costs of the debit and credit cards.
We all are living in an era where technology is making everything smoother. If we talk about the transaction modes, we used to have hard currency a few years back. People used to carry hard currency while purchasing something from the store. But, now, things have been changed completely. We have got credit cards and debit cards with the help of the technology and therefore, we are now capable of making cashless transactions and online transactions. Moreover, with the help of NFC technology, we can even make contactless transactions. Since the arrival of COVID-19, people are using contactless and online transaction modes to make payments online.
On the other side, small merchants are upgrading their payment terminals so that they can accept credit card payment from the consumers flawlessly. Well, when it comes to online business, there are many things that create confusion. First of all, the business strategies of many payment processors make the online business difficult for many merchants. They offer long term contracts with a flat-rate pricing structure that is really problematic for many businesses. On the other side, some payment processors do not explain all the fees that a merchant will have to pay at the end of the month. So, all these aspects together create a troublesome situation for the merchants.
We at International Payment Solutions do our businesses transparently. our company keeps everything very clear as well as transparent with our merchants. Our company offers interchange plus pricing structure to our customers so that they can understand what the actual interchange rate is. We also mention the other kinds of fees that a merchant will have to pay.
Change Your Payment Processor
Well, if you have already started your online business and you are facing problems due to your payment processor, you can change your payment processor. You can use the Canadian code of conduct for the credit and debit card industry. The Canadian code of conduct sends a 90 days’ notice to the merchants. After that, they can cancel their contracts. But, in such a scenario, they have to pay a penalty. It means that if you are trapped in a long and complicated merchant processor’s contract, you don’t have to worry. You can easily cancel your contract and get rid of it.
We at International Payment Solutions understand the concern of the small merchants and therefore, we have made a brief breakdown of the Canadian code of conduct below:
90 Day Notice Period
Well, if any merchant processor wants to increase the credit card processing fee, the company must provide an advance notice to the businessman or the merchant. It will be a 90-day notice. During this period, if the merchant wants to cancel the contract, he can do it. In such a case, the merchant does not have to give any kind of penalty. In addition to this, you must know that the equipment leasing price does not come under this clause.
Effective Discount Rate
If there is an effective discount rate, the merchant processor has to mention it in the monthly statement bill. The effective processing rate is different for different credit and debit cards and according to the Canadian code of conduct, the payment processor has to mention the different processing rates in the monthly statement bill. Moreover, there are different fees associated with the credit card processing fee such as per-transaction fee, non-qualified fees, card-brand fees, interchange fees, and qualified fees. So, the monthly bill will be in a transparent form. The merchant should know everything about what they are paying.
If you don’t know what these are, you will be confused to see the monthly statement. This is why we have elaborated the credit card transaction process in order to give you a solid idea. So, have a look at the following points:
The customer initiated the credit card transaction and after the merchant processor receives the transaction information through the online payment gateway. After that, the virtual platform passes the information to the credit card network. The network shares the information with the credit card issuing bank. The bank finally approves and declines the transaction depending upon the available credit. Finally, the bank passes the information to the brand and the credit card brand shares it with the payment processor.
Auto-renew agreement is one of the newest claws of the Canadian code of conduct. According to it, the merchant can discontinue their agreements at any point. They do not have to provide any prior notice to the merchant processor.
Not An IPS Merchant?
So, if you want the best merchant processor solution, you can become a merchant of International Payment Solutions. The virtual platform will definitely help you to elevate your business to the next level.