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Canadian Payment Card Code of Conduct Now Covers Mobile Payments

April 14, 2024         By: Kevin Xu

The Canadian Federal government has updated its code of conduct for credit and debit card transactions to cover mobile transactions.

For businesses looking to go mobile, this move adds a level of clarity and certainty.

Last November, Visa and MasterCard cut interchange rates to 1.5 percent of every transaction after facing government pressure. This rate will also last for 5 years for Canadian merchants.

The interchange rate for Canadian merchants was about twice as high as those for European merchants, and according to Canada’s Competition Bureau, ranked among the highest in the world.

Merchants looking to accept mobile payments will pay the same rates as credit and debit card transactions.

If their processors decide to tack on additional fees, merchants can cancel their contracts without penalty.

Of course, the code of conduct and the new update to cover mobile transactions are voluntary, meaning card networks and processors aren’t required to comply.