- Fee Disclosure Box for the Code of Conduct for the Credit and Debit Industry in Canada
- April 18, 2016 | Authors: Rachael Belanger; Stephen J. Redican
- Law Firm: Borden Ladner Gervais LLP - Toronto Office
- In addition to the information summary box, the 2015 updates to the Code of Conduct add the requirement that a fee disclosure box setting out the fees for the most common types of card transactions and processing methods be included in merchant-acquirer agreements entered into or renewed starting November 13, 2016. This fee disclosure box and disclosure of all other fees must be included on the cover page immediately following the information summary box. The fee disclosure box requires disclosure for each payment card type broken out by processing method. All other fees must also be disclosed in language that is clear, simple and not misleading.
The guidance recommends disclosing such other fees in a table grouped by theme with descriptive headings. Flat fees must be disclosed as the same fee for each payment card type and processing method in accordance with the template fee disclosure box. Other variables that affect the rate charged must be disclosed in the contract disclosure with footnotes added in the fees disclosure box to explain those variables. International cards are not to be included in the fee disclosure box.
The information summary box and fee disclosure box will be not be required for automatically renewable merchant-acquirer agreements renewed starting November 13, 2016 for a term of no longer than 6 months with no changes to the initial terms and conditions of the agreement.