Code of Conduct for Credit and Debit Card Industry
The Code of Conduct for the Credit and Debit Card Industry in Canada was first announced in April 2010 to promote fair business practices and ensure merchants understand the costs associated with accepting card payments. In April 2015, the Government of Canada announced enhancements to the Code including enhanced disclosure for contract terms and merchant fees, additional flexibility for cancellation and renewal terms, and interchange rate reductions.
Moneris has adopted the enhanced Code of Conduct in accordance with the provisions set out by the Government of Canada.
The ability for merchants to accept payments is a critical success factor for their businesses. As an active participant in the government hearings and consultations on the Code of Conduct, we will continue to work with the Government, the Card brands, our merchants and other stakeholders to implement the updates.
Committed to providing 90 days notice of fee increases and new fees
Moneris is committed to providing merchants at least 90 days of notice of any fee increases or the introduction of a new fee related to credit or debit transactions. The notice period will allow merchants to assess the impact of the change on their overall processing costs. We support the Code of Conduct’s directive to allow merchants to opt out of their contracts with Moneris, without penalty, within 90 days of notice of the fee increase or the introduction of a new fee.
Effective Merchant Discount Rate
In support of our adoption of the Code of Conduct we have made some important changes to our merchant statement. Included among these changes is the addition of an Effective Merchant Discount Rate (eMDR) calculation. The eMDR is calculated as the total transaction fees* divided by the total sales volume. eMDR will only be displayed if you process a specific type of transaction during the statement period. For example, if you accept Visa Debit but have not processed a Visa Debit transaction during the statement period, eMDR for Visa Debit will not be displayed. The eMDR will appear, when applicable, for the following card programs:
- Visa Credit
- Visa Debit
- MasterCard Credit
- Debit MasterCard
- Interac Online
- American Express
*Total transaction fees include the total of any of any merchant discount rate (MDR), non-qualified fees, differential fees, card brand fees, foreign card brand fees, transaction fees and refund fees.
To assist merchants in understanding the calculation of the Differential fee, refer to this document. It lists each of the Payment Brand rates and the associated Differential fee. We encourage merchants to review this document periodically to understand how their fees may be affected by the types of cards they accept.
The Differential fee was introduced as a way to better align the cost of processing payments with the types of cards merchants accept. The introduction of premium cards has increased pricing complexity in the Canadian marketplace and as such processing costs for merchants may trend higher because premium cards attract a higher rate, as set by the payment brands, such as Visa® and MasterCard® (each a “Payment Brand”).
The Differential fee will apply to any Visa, Visa Debit, MasterCard, Debit MasterCard or Discover transaction that does not qualify for the Visa Consumer Electronic Rate (currently 1.42%), the Visa Debit Consumer Electronic rate (currently 0.25% + $0.051), the MasterCard Consumer Electronic Rate (currently 1.44%), the MasterCard Debit Consumer Electronic Rate (currently 0.25% + $0.052) , the Discover Consumer Electronic (CPSL – Retail) Rate (currently 1.60%) or the UnionPay Consumer Electronic Rate (currently 1.10%), each a "Target Qualification Level." As each of these rates are set by Visa, MasterCard, Discover and UnionPay respectively (and not Moneris) each rate is subject to change without notice. The differential fee for each applicable transaction will be equal to the difference between the rate associated with a Target Qualification Level and the rate at which the Payment Brand actually processed the transaction.
Some of the Payment Brands have provided additional information about rates on their websites:
Moneris Solutions has made a significant investment in Merchant Direct® – our online statement tool which allows you to view enhanced transaction details – 24 hours a day, 365 days a year. Visit moneris.com/merchantdirect to register or to log in to your account.
1 Based on a ticket size of $100. Calculated by converting the merchant discount rate (%) to a dollar amount and comparing it to the Target Qualification Level as a dollar amount.
2 Based on a ticket size of $100. Calculated by converting the merchant discount rate (%) to a dollar amount and comparing it to the Target Qualification Level as a dollar amount.