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Voluntary Credit Card Code

Jim Flaherty, Canadian finance minister issued a new voluntary code of conduct for credit card companies. Merchants will now receive information concerning fees and rates charged by card firms when their cards are used for payment, and will be given advance notice of any hikes or new charges. Merchants will be allowed to terminate a contract without penalty if new fees are introduced.

Under the code, merchants will be allowed to accept credit cards from a specific network without being forced to accept that same company's debit cards. Flaherty warned that though the code of conduct is voluntary, non-compliance by card companies could spur the Canadian government to institute regulation. This volutary code is being issued as credit card companies mount a push to capture a share of the debit card market, which constitutes 60 percent of all card payments in Canada.

Loretta Hunnicutt

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