Merchant protections when accepting card payments
Code of Conduct for the Payment Card Industry in Canada
The Code of Conduct for the Payment Card Industry in Canada (the Code) was introduced in 2010. All major payment card network operators in Canada have agreed to the Code. They are American Express Canada, Discover, Interac, Mastercard Canada, Visa Canada and UnionPay. The Code was revised and updated in 2015 and 2024.
The Code aims to:
- ensure you, as a merchant, are fully aware of the costs of accepting payment cards so that you can reasonably forecast your monthly costs related to accepting such payments
- increase pricing flexibility to encourage consumers to use lower-cost payment options
- allow you to choose the payment options to accept
Payment card network operators
A payment card network operator (PCNO) is an entity that operates or manages a payment card network. PCNOs establish rules, standards and procedures for issuing, accepting, transmitting or processing payment card transactions, including compliance of card issuers and payment processors with the Code.
PCNOs that have adopted the code are responsible for:
- embedding the Code's policies into their agreements or network rules
- requiring all their network participants to comply with the Code
Network participants
Under the Code, participants include entities that offer a PCNO’s products or services, such as issuing payment cards and helping merchants accept payment cards. They fall into 3 groups: issuers, acquirers and downstream participants.
Issuers are entities that issue payment cards to cardholders.
Acquirers are entities that enable merchants to accept payments by payment card by way of:
- a direct contractual relationship with a PCNO. For example, as an acquiring entity, or
- a sponsorship by an acquiring entity. For example, an agent of an acquiring entity
Under the Code, acquirers are responsible for their downstream participants.
A downstream participant is any person or entity that:
- has a direct or indirect relationship with an acquirer operating in Canada as described above
- is directly or indirectly covered by a PCNO’s network rules
- interacts with a merchant located in Canada to provide or offer payment processing services and/or payment processing equipment for payment card transactions in Canada
Financial Consumer Agency of Canada’s role
The Financial Consumer Agency of Canada (FCAC) monitors PCNOs’ implementation of the Code. It also supervises their compliance with the provisions of the Code.
FCAC does not resolve individual disputes and does not provide redress or compensation.
FCAC may examine a complaint to determine if the issues identified reflect a risk of a PCNO’s non-compliance with Code obligations.
Learn how to file a complaint with a payment card network operator.