(Apr. 01/10) The federal government has introduced the Payment Card Networks Act (PDF), which follows through on the budget commitment to provide government oversight of the Code of Conduct for credit card companies in Canada. The Act also provides the Minister of Finance with new legislative powers to regulate the payment systems market, including credit card companies, processors and banks.
Consistent with CRFA’s recommendations (PDF) for the Code of Conduct, a federal agency will monitor the payment card system, prepare assessments against payment card network operators and provide reports back to Parliament.
Card companies, processors and financial institutions can also face penalties up to $200,000 for failure to comply with the Act.
The Act goes a long way in addressing CRFA’s concerns about unfair business practices and lack of transparency and accountability by card payment systems in Canada.