Code of Conduct for the Payment Card Industry in Canada: merchant rights in 2026

The Code of Conduct for the Payment Card Industry in Canada is the main set of rules protecting merchants who accept cards. Its revised version took effect on 30 October 2024, replacing the 2015 version (the Code was first introduced in 2010). In short, it gives you: clear disclosures before you sign; a monthly statement that shows your effective rate; 30 to 60 calendar days' notice before a fee increase or new fee; the right to cancel without penalty within 70 days after such a change; limits on automatic renewal; the freedom to accept credit without debit (or the reverse); and the right to offer discounts for cheaper payment methods. The Financial Consumer Agency of Canada (FCAC) supervises compliance by the payment card networks.

This guide is part of the fees and rules section. It summarises the Code as described on FCAC pages checked in October 2026; read the official text before relying on a specific clause.

Who the Code applies to

The Code is a voluntary commitment adopted by the payment card network operators in Canada. FCAC lists American Express Canada, Discover, Interac, Mastercard Canada, Visa Canada and UnionPay as having agreed to it. The networks must write the Code into their agreements or rules and require their participants to comply:

• Issuers, which issue cards to cardholders;
• Acquirers, which enable merchants to accept card payments, directly or through sponsorship, and are responsible for their downstream participants;
• Downstream participants, such as processors, independent sales organisations and equipment providers serving Canadian merchants under the networks' rules.

So even if you deal only with a small reseller, the Code should reach your agreement through the acquirer behind it.

Before you sign: disclosures

If the cost disclosure in the final agreement differs from the one given with the application, the changes must be highlighted and explained. The disclosures can be waived only for agreements negotiated with legal counsel on both sides and with the merchant's express consent, and even then must be provided on request.

Every month: the statement

You must receive, or have access to, a monthly statement that shows:

• your effective merchant discount rate for each card type you accept (total processor fees and network core fees divided by sales volume for that card type),
• the rate and amount charged for each fee category,
• the number and volume of transactions by type.

Flat or blended-rate plans may show the per-transaction rate and any fees not included in it instead. How to use these numbers is explained in how to calculate your effective rate.

When fees go up: notice and the 70-day exit

• Acquirers and downstream participants must notify you 30 to 60 calendar days before a fee increase or a new fee takes effect.
• The notice must show the previous and new amounts, the source of the change, the amount passed on to you, and the date your 70-day exit window ends.
• You may cancel without penalty within 70 days after the effective date of an increase, a new fee, or a network fee reduction that is not passed on to you in full.
• If you were not given notice within the 30-to-60-day window, you can cancel without penalty at any time.
• Excluded: increases that follow a schedule already set in your agreement, such as volume tiers or the end of a disclosed promotional rate.

Cancellation process. After you give notice that you are leaving, the processor must send cancellation documents within 5 business days. Cancellation takes effect on the date you request, provided you have met outstanding obligations (for example, returning rented equipment) and at least 30 calendar days have passed since you submitted the documents, unless both sides agree to an earlier date.

Renewal limits

For standard-form agreements:

• Fixed-term agreements cannot automatically renew for the full original term. They may convert to automatic extensions of six months or less.
• You can give notice of non-renewal up to 45 calendar days before renewal.
• Related service agreements, such as equipment rental, cannot run longer than your main processing agreement.

Contract terms and exit fees are covered in more depth in contract length and early termination fees.

Your choices at the till

• Accept what you choose. You may accept a network's domestic credit or domestic debit cards without having to accept both.
• No negative option. You must expressly consent to any new processing product or service; it cannot be added unless you opt out.
• Discounts. You may offer discounts for different payment methods (such as cash or debit) and different discounts between card networks.
• Premium cards. Issuers must limit premium cards to a well-defined class of cardholders, brand them clearly as premium, and disclose on applications that they may cost merchants more.

Credit card surcharging is governed by network rules and class action settlements rather than by the Code itself; see credit card surcharge rules.

Complaints

Processors and networks must have a clear, accessible complaints process. Under the revised Code, complaints must be acknowledged within 5 business days and investigated and resolved within 20 business days (30 for network operators), prioritised by urgency. You can contact the FCAC at any stage. The FCAC does not resolve individual disputes or award compensation, but it uses complaints to identify possible systemic non-compliance.

Worked example: using the 70-day window

An illustrative boutique receives a notice dated 1 March that its monthly account fee will rise from $10 to $20 on 15 April. The notice is 45 days ahead, within the 30-to-60-day rule. The boutique gathers quotes, finds a better fit, and gives notice to leave on 10 May, 25 days after the increase took effect and well within 70 days. It returns the rented terminal. Cancellation documents arrive within 5 business days; cancellation takes effect at least 30 days after the boutique submits them. No early termination fee applies to this exit.

FAQ

Is the Code law?

It is a voluntary code adopted by the networks and enforced through their rules and agreements, with FCAC supervision of the networks' compliance. FCAC's role is set by federal law. Contract disputes with a processor remain matters of contract law.

Was there a 90-day notice rule?

Under the 2015 version, merchants received 90 days' notice of fee increases. The revised Code in effect since 30 October 2024 uses a 30-to-60-day notice window and a 70-day exit window. Check which version your contract refers to and rely on the current text.

Does the Code cover my equipment lease?

It limits related service agreements so they do not outlast the processing agreement. A separate lease with a leasing company may sit outside it; read the lease and get advice if it is long or non-cancellable.

Sources

• FCAC: Accepting card payments — Code overview, merchant rights, complaints
• Financial Consumer Agency of Canada — full Code text and supervision
• Department of Finance Canada — announcement of the revised Code (October 2024)
• Justice Laws Website — Financial Consumer Agency of Canada Act