Code of Conduct for Credit and Debit Card Industry
In April 2010, Minister of Finance Jim Flaherty announced the Code of Conduct for the Credit and Debit Card Industry promoting fair business practices and ensuring that merchants understand the costs associated with accepting card payments.
Moneris announced the full adoption of the code in May 2010. 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 advocated for merchants to be well-informed of the costs associated with processing payments.
We are committed to the Code of Conduct.
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
*Total transaction fees include the total of any of any merchant discount rate (MDR), non-qualified fees, interchange differential fees, card brand fees, foreign card brand fees, transaction fees and refund fees.
Interchange Differential Fees
To assist merchants in understanding the calculation of the Interchange Differential fee, refer to this document. It lists each of the Payment Brand interchange rates and the associated Interchange 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 Interchange 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 interchange rate, as set by the payment brands, such as Visa® and MasterCard® (each a “Payment Brand”).
The Interchange Differential fee will apply to any Visa, Visa Debit, MasterCard, Debit MasterCard or Discover transaction that does not qualify for the Visa Consumer Electronic Interchange Rate (currently 1.54%), the Visa Debit Consumer Electronic Interchange rate (currently 0.25% + $0.051), the MasterCard Consumer Electronic Interchange Rate (currently 1.59%), the MasterCard Debit Consumer Electronic Interchange rate (currently 0.25% + $0.052) or the Discover Consumer Electronic (CPSL – Retail) Interchange Rate (currently 1.60%), each a "Target Qualification Level." As each of these rates are set by Visa, MasterCard and Discover respectively (and not Moneris) each rate is subject to change without notice. The interchange differential fee for each applicable transaction will be equal to the difference between the interchange rate associated with a Target Qualification Level and the interchange rate at which the Payment Brand actually processed the transaction.
For additional information, please find the associated links to the Payment Brand’s websites which provide further information on interchange rates:
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. Interchange for Visa Debit is 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. Interchange for Debit MasterCard is calculated by converting the merchant discount rate (%) to a dollar amount and comparing it to the Target Qualification Level as a dollar amount.