Flaherty Proposes Credit Card Code of Conduct

Kate Yule
Thursday, November 19, 2009

Canada’s finance minister wants to level the playing field for consumers and small businesses.

Jim Flaherty is proposing a code of conduct for credit and debit card companies. It’s aim is to promote fair business practices and make sure that both merchants and consumers understand the costs and benefits of credit and debit cards.

He says the new code would give merchants more flexibility with pricing, and allow consumers to select the lowest-cost payment option.

Under the new code, merchants would be able to cancel contracts with credit card issuers without penalty after any change in transaction fees.

A draft proposal will be sent out for input from stakeholders over the next two months. The code could be implemented as early as next year.