The new rules also include a provision that says mobile users must be given full control of the default settings on their virtual wallets and other several additions to the code of conduct were mentioned, including a requirement that savings resulting from reduced credit and debit card fees be fully passed on to merchants.
According to the source, Visa and MasterCard struck a voluntary agreement with the government last November. Under the deal, both companies agreed to limit how much they charge retailers for the next five years to 1.5 percent of the value of the transaction.The code of conduct revisions aim to ensure that merchants will actually see that money.
The expanded code also allows merchants to exit their contracts with credit card processors without penalty and it grants new protections to retailers deciding to stop accepting mobile payments.
Dan Kelly, president of the Canadian Federation of Independent Business, says the new rules will give merchants an advantage in the battle against new mobile fees. For example, if credit card processors try to introduce new fees for mobile payments, merchants will be able to cancel their contracts or stop accepting smartphone payments in response, he said.
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