New Rules in Canada for Payments ContractsNew rules came into effect in Canada on Nov 12, 2013 dealing with contracts between merchants and payment providers (including banks), payment networks, payment hardware providers or multiple service providers, in the credit and debit card and payment processing industry. The rules issued by the Commissioner of the Financial Consumer Agency of Canada in Guidance CG-10 provide for, among other things, increased transparency and disclosure of certain contract terms, notification procedures for new fees or fee increases, and cancellation of contracts by merchants without penalties in certain circumstances. The rules may apply to contracts between merchants and debit and credit card industry participants such as acquirers, hardware manufacturers, payment card network operators, independent sales organizations, card issuers and outsourced third-party service providers.For more information on these new rules, the Code of Conduct for the Credit and Debit Card Industry, and how they may affect your business and contract negotiations, contact any member of the Bennett Jones Payment Solutions Group. Please note that this publication presents an overview of notable legal trends and related updates. It is intended for informational purposes and not as a replacement for detailed legal advice. If you need guidance tailored to your specific circumstances, please contact one of the authors to explore how we can help you navigate your legal needs. For permission to republish this or any other publication, contact Amrita Kochhar at kochhara@bennettjones.com. |
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