S-215
First Session, Forty-first Parliament,
60-61 Elizabeth II, 2011-2012
SENATE OF CANADA
BILL S-215
An Act to amend the Payment Card Networks Act (credit card acceptance fees)
first reading, December 11, 2012
THE HONOURABLE SENATOR RINGUETTE
09154
SUMMARY
This enactment amends the Payment Card Networks Act in order to limit the fees that the participants in a designated payment card network require from merchants who accept payments by credit card. The payment card networks operated in Canada by Visa and MasterCard are designated. The Minister of Finance may vary the fee limits and is responsible for supervising the compliance of the participants. The Minister may seek an order of a court to enforce compliance.
Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca
1st Session, 41st Parliament,
60-61 Elizabeth II, 2011-2012
senate of canada
BILL S-215
An Act to amend the Payment Card Networks Act (credit card acceptance fees)
2010, c. 12, s. 1834
Her Majesty, by and with the advice and consent of the Senate and House of Commons, enacts as follows:
1. Section 3 of the Payment Card Networks Act is amended by adding the following in alphabetical order:
“credit card acceptance fees”« frais d’acceptation d’une carte de crédit »
“credit card acceptance fees” means the fees that a merchant incurs for accepting a payment by credit card; such fees include the interchange fee and any other fees related to the transmission or processing of the payment transaction.
“designated payment card network”« réseau de cartes de paiement désigné »
“designated payment card network” means a payment card network designated under section 9.
“interchange fee”« commission interbancaire »
“interchange fee” means the fee retained by the issuer of a credit card on a payment transaction made by the cardholder.
2. The Act is amended by adding the following after section 8:
DESIGNATED PAYMENT CARD NETWORKS
Designation
9. The payment card networks operated in Canada by Visa Canada Corporation and MasterCard International Incorporated are hereby designated.
Credit card acceptance fees
10. (1) The following tariff of credit card acceptance fees applies to credit card transactions made through a designated payment card network
(a) charities: no credit card acceptance fees;
(b) government institutions: 0.3% of the transaction value; and
(c) users other than those referred to in paragraphs (a) and (b): 0.5% of the transaction value.
Coming into force
(2) The tariff of credit card acceptance fees established by subsection (1) applies from the first day of the calendar year immediately following the coming into force of this section.
Amendments to the tariff
11. (1) The Minister may, by order, amend the tariff of credit card acceptance fees established by section 10.
Coming into force
(2) The amended tariff of credit card acceptance fees applies from the first day of a calendar year following the calendar year referred to in subsection 10(2).
Limit
12. The credit card acceptance fees imposed on a merchant for its credit card transactions made through a designated payment card network may not exceed the amount of the credit card acceptance fees set out in subsection 10(1) or under subsection 11(1) for each category of users described in subsection 10(1).
Supervision
13. (1) The Minister is responsible for supervising designated payment card networks to determine whether they are in compliance with the tariff of credit card acceptance fees established under this Act.
Examination and inquiry
(2) The Minister must, from time to time but at least once in each year, make any examination and inquiry that the Minister considers necessary to determine whether the tariff of credit card acceptance fees established under this Act is being complied with by the entities participating in the designated payment card networks.
Access to records
(3) For the purposes of this section, the Minister
(a) has a right of access to any records, including electronic records, of an entity participating in a designated payment card network; and
(b) may require an entity participating in a designated payment card network to provide information and explanations, to the extent that the entity is reasonably able to do so.
Required information
(4) An entity participating in a designated payment card network must provide the Minister with any information that the Minister may require for the purposes of this section.
Compliance orders
14. If an entity participating in a designated payment card network fails to comply with the tariff of credit card acceptance fees established under this Act, the Minister may apply to a superior court for an order directing the entity to comply with the tariff and, on the application, the court may so order and make any further order it thinks fit.
Published under authority of the Senate of CanadaAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada
Explanatory Notes
Payment Card Networks Act
Clause 1: New.
Clause 2: New.