This article offers further details regarding the thirteen Element Codes presented in the Code of Conduct for the Credit and Debit Card Industry in Canada. Although Partners will only be required to work with Payrix to resolve Element Codes 1, 2, and 13, we have detailed the other Element Codes for a better understanding of Payrix and partner’s shared responsibility to follow the Code requirements.
Table of Contents
Element 1: Transparency and Disclosure Element
Payrix will ensure all disclosures to sub-merchants provided under the Code are presented in a clear, simple, and non-misleading manner.
Sub-merchant agreements will include a cover page containing:
An information summary box that provides key elements of the contract in a consolidated fashion using the template set out in Addendum I to the Code;
A fee disclosure box using the template set out in Addendum I to the Code; and
Another fees disclosure box disclosing all other fees (e.g. monthly minimums) to be charged to the merchant. There is no prescribed template for the other fees disclosure box.
Payrix’s Partners are responsible for providing statements to the merchants through hard copy via post, soft copy via email, or using a merchant portal where applicable and available.
Payrix will provide Partners billing information that includes the following Code requirements that must be developed into the Partner’s statement creation system during implementation and will be periodically tested to ensure controls are being met appropriately.
Effective merchant discount rate for each type of payment card from a PCNO network that the merchant accepts;
Interchange rates and, if applicable, all other rates charged to the merchants;
The number and volume of transactions for each type of payment transaction;
The total amount of fees applicable to each rate; and,
Details of each fee and to which PCNO they relate.
Element 2: Notice of Fee Increase or New Fee Element
As Payrix would only increase fees directly applicable to its Partners, Payrix will provide a minimum of 120 days’ notice of any fee increases, the introduction of a new fee related to any credit or debit card transactions, or a reduction in applicable interchange rates. If Payrix’s Partners decide to make changes to fees due to this notice, Partners must provide their merchants with a minimum of 90 days’ notice of any fee increases, the introduction of a new fee related to any credit or debit card transactions, or a reduction in applicable interchange rates.
Payrix will provide partners with training and guidance during the implementation period, provide Partners with price change notification templates and conduct periodic testing to ensure controls are being met appropriately.
Payrix will ensure that the Price Change Notification Templates describe the nature of the fee change and clearly shows the difference to help sub-merchants better understand the impact of the fee change.
Upon written request, Payrix will provide the sub-merchant with an updated fee disclosure box reflecting the impact.
Notification is not required for fee changes made in accordance with pre-determined fee schedules, such as those based on sub-merchant sales volume, provided that the schedules are included in the sub-merchants contract.
Element 3: Contract Cancellation
Should Payrix and/or Payrix’s Partners increase fees, introduce a new fee related to any credit or debit card transactions, or not pass on the savings from a reduction in applicable interchange rates, merchants have the right to cancel their agreement with Payrix at any time with no penalty or termination fees.
Element 4: No Obligation Acceptance
Payrix will not require sub-merchants to accept both credit and debit payments from the same payment card network. A sub-merchant can choose to accept only credit or debit payments from a network without having to accept both.
Element 5: Payment Method Discount Element
Payrix will not prohibit sub-merchants from providing discounts for different methods of payment (for example, cash, debit card, and credit card), as well as different levels of discounts among different payment card networks.
If sub-merchants choose to offer these types of discounts, they must clearly display the discounts at the point of sale.
Element 10: Negative-Option Acceptance
Should Payrix introduce new products or services, sub-merchants shall not be obligated to accept those new products or services. For Payrix to offer a new product or service an updated contract with Partners and sub-merchants will be required.
Element 11: Contactless Payments
Payrix does not currently offer card-present capabilities in Canada. Should Payrix start offering card-present and contactless capabilities in the future, Payrix will ensure compliance with this Code element.
Element 12: Renewal and Cancellation Disclosure
Payrix does not have fixed-term contracts and sub-merchants can cancel their agreement with Payrix at any time without penalty.
This cancellation extends to related service contracts where there is a business connection between Payrix and other service providers where services are considered related and as a single service package.
Element 13: Complaint Handling Process
Merchants should have access to a clear dispute resolution process that provides for an
investigation and timely response of complaints pertaining to the Code.
Payrix has established Canada Compliance Guide on the online resource center that outlined the
complaint intake process. The Code Complaint Intake Process sets out the steps taken by Payrix’s
Partners and Payrix when receiving complaints from Canadian sub-merchants.