Credit/Debit Canadian Code of Conduct for Canadian Merchants

Dec 14, 2017

The Code of Conduct came into force in August 2010. It’s called to promote business practices, and guarantee merchants and customers fully understand the costs and benefits associated with credit/debit cards.

Credit and Debit Canadian Code of Conduct

The Code is developed to:

  1. Ensure merchants clearly understand the costs associated with accepting credit/debit card payments, thus allowing merchants to have a reasonable forecast of their monthly costs concerning the mentioned payments.
  2. Enable merchants to enjoy increased pricing flexibility, thus encouraging consumers to choose the lowest-cost payment option.
  3. Provide merchants with a free choice of their desired payment options.

Merchants interested in opening a Canadian merchant account should look no further: is here to help you. EMB is voted the #1 high risk merchant services provider in the US and has an A+ rating with the BBB. Moreover, has an A rating with Card Payment Options, and provides unmatched payment processing services for both traditional and high risk businesses.

The Benefits and Missing Points of the Code

Below is the breakdown of current benefits of the Code, and items that seem to be missing. First, let’s start with the benefits:

  1. Effective Discount Rate

Processors must display the “effective processing rate” for each credit/debit card type on their monthly statements.

  1. Limitations on Auto-Renew Agreements

Merchants can at any point notify their processor that they don’t wish to auto-renew their agreement.

  1. Reduction in Applicable Interchange Rates

Both Visa and MasterCard introduced lower interchange rates in April 2015. The updated Code of Conduct allows merchants to immediately cancel their existing agreement if the reduced interchange cost isn’t passed on in full back to the merchant.

  1. 90-Day Notice of Fee Increases

Fees can’t be increased by the card-brands such as Visa or the processor if merchants haven’t received a 90-day advance notice. If a fee increase is announced, the merchant can cancel his/her account without penalty. The penalty-free cancellation is applicable up to 90-days following the fee increase.

Now, let’s concentrate on the missing points:

  1. Equipment Leasing Not Covered

Merchants can cancel their merchant account without penalties if processing rates increase. However, this doesn’t refer to equipment leases.

  1. No Advertising Standards

Under the Code of Conduct, no advertising standards are established when it comes to processing fees.

With a payment processing expert like, merchants can get the lowest possible rates and the best terms in the industry. Contact EMB to get answers to all your questions without delay.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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