New Rules in Canada for Payments Contracts

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New rules came into effect in Canada on Nov 12, 2013 dealing with contracts between merchants and payment providers (including banks), payment networks, payment hardware providers or multiple service providers, in the credit and debit card and payment processing industry.  The rules issued by the Commissioner of the Financial Consumer Agency of Canada in Guidance CG-10 provide for, among other things, increased transparency and disclosure of certain contract terms, notification procedures for new fees or fee increases, and cancellation of contracts by merchants without penalties in certain circumstances.  The rules may apply to contracts between merchants and debit and credit card industry participants such as acquirers, hardware manufacturers, payment card network operators, independent sales organizations, card issuers and outsourced third-party service providers.