CG-15 Information summary box examples—Credit and debit card code
Overview
The following FCAC guideline provides examples of information summary boxes, for illustrative purposes, to clearly set out FCAC’s expectations in relation to this requirement.
Who this guideline is for
This FCAC guideline applies to payment card network operators (PCNOs) that operate in Canada and their participants including card issuers and acquirers, independent sales organizations (ISOs) and other service providers such as terminal leasing firms (“Participants”).
In this guideline
- Details and history
- Background
- Purpose
- Relevant elements of the Code
- Guideline on Information Summary Box examples
- Example #1: Merchant–acquirer agreements with no related contracts—Information Summary Box example
- Example #2: All merchant–acquirer agreements with multiple related contracts—Information Summary Box example
- Example #3: All merchant–acquirer agreements with multiple related contracts—Information Summary Box example
- Conclusion
- Contact us
1. Details and history
Consulted: Public consultation from March 15, 2016, to April 15, 2016
Effective date: November 13, 2016
2. Background
The 2015 amendments to Element 1 of the Code of Conduct for the Credit and Debit Card Industry in Canada (the Code) require every new and renewed merchant–acquirer agreement to include a cover page containing an information summary box that provides the key contractual elements in a consolidated fashion, using the templates in Addendum I to the Code.
Payment card network operators (PCNOs) and their participants, including card issuers and acquirers, independent sales organizations (ISOs) and other service providers such as terminal lessors, are collectively referred to in this guideline as “Participants.” Participants are responsible for ensuring adherence to Code requirements for all contracts entered into or extended after November 13, 2016.
3. Purpose
As part of its collaboration activities with Code stakeholders, it came to the attention of the Financial Consumer Agency of Canada (FCAC) that it would be beneficial for Participants to receive specific guidance on information summary boxes. The following FCAC guideline provides examples of information summary boxes, for illustrative purposes, to clearly set out FCAC’s expectations in relation to this requirement.
4. Relevant elements of the Code
Element 1 – Payment card network rules will increase transparency and disclosure by payment card networks and acquirers to merchants
The payment card networks and their participants will work with merchants, either directly or through merchant associations, to ensure that merchant–acquirer agreements and monthly statements include a sufficient level of detail and are easy to understand.
All merchant–acquirer agreements will include a cover page containing an information summary box that provides key elements of the contract in a consolidated fashion and a fee disclosure box, using the templates in Addendum I.
Acquirers must also disclose all other fees (e.g., monthly minimums, administration fees, etc.) charged to the merchant.
Payment card networks will make all applicable standard interchange rates and acquiring network assessment fees easily available on their websites. In addition, payment card networks will post any upcoming changes to these rates and fees on their websites once they have been provided to acquirers. Payment card network rules will ensure that merchant statements include the following information:
- the effective merchant discount rateFootnote 1 for each type of payment card from a payment card network that the merchant accepts;
- interchange rates and, if applicable, all other rates charged to the merchants by the acquirer;
- the number and volume of transactions for each type of payment transaction;
- the total amount of fees applicable to each rate; and
- details of each fee and to which payment card network they relate.
5. Guideline on Information Summary Box examples
FCAC has developed examples of information summary boxes to guide the industry, namely:
- one example of a merchant–acquirer agreement with no related contracts; and
- two examples of merchant–acquirer agreements with multiple related contracts.
In addition to these examples, Participants can refer to FCAC’s CG-3 Clear language and presentation principles and guidelines for the industry for more information on FCAC’s clear language and presentation principles and examples.
a. Example #1: Merchant–acquirer agreements with no related contracts—Information Summary Box example
Note: This information summary box example is for illustrative purposes only. Participants should ensure that the disclosure of key information set out in merchant–acquirer agreements with no related contracts is presented in a language that is clear, simple and not misleading. The headings on the left-hand side of the information summary box are provided by the Code and should not be altered. It is expected that the terminology used in the information summary box will be reflected in merchant–acquirer agreements.
The information contained in the right column of the information summary box is intended for illustrative purpose only and DOES NOT purport to represent all of the information that is relevant to a merchant’s agreement for processing debit and credit card transactions.
| Information summary box | |
|---|---|
| Date of contract | Effective start date: June 1, 2015 |
| Acquirer | ABC Acquirer Inc. |
| Cancellation of contract(s) and applicable penalties | Merchant’s right to cancel Despite what the contract states on the merchant’s right to cancel, the merchant may cancel the contract without penalty in the event of:
To do so, the merchant must exercise this right within 90 days of the date of receiving notice of:
By sending notice to the acquirer to this effect to the person responsible for such matters under the contract for such matters. Other cancellation rights Describe any other cancellation rights outlined in the contract, including any applicable penalties. For example, the contract may contain a permission that allows the merchant to cancel the contract at any time by paying:
Cancellation procedures, including the person to contact for more information, can be found on page X of the contract, under the heading Cancelling the Contract. Contract renewals In the case of a fixed term contract, the term of the contract can only be extended automatically for a maximum period of six months per extension. This is despite any language in the contract to the contrary on renewals or extensions for longer periods. Notice of non-renewal Should the merchant not wish to renew the contract at the end of its term or any renewal period, he or she must provide the acquirer with notice of no less than ninety days prior to the end of the term or the renewal period. In the case of a variable term contract, the contract will expire if the merchant provides notice [insert particulars that describe the process for confirming the expiry of the term of the contract]. Other Separate terms, conditions and fees apply for point-of-sale terminal equipment. They are listed in the “Information About Payment Terminal” section. |
| Complaint handling procedures | Merchants complaints should be addressed to: ABC Acquirer Inc. customer support and can also be accessed through www.abca.com. ABC Acquirer Inc. customer support Or write to: |
| Information about payment terminal |
ABC Acquirer Inc.
☐ Rented ☒ Leased ☐ Purchased This provision does not create an obligation for all of these options (buy, lease, or rent) to be offered to a merchant by the Acquirer.
*Unless certain conditions are met to allow for waiving of the termination fee. For more details, see contract page X. |
| Contactless payments acceptance | Contactless payments have been enabled at the point-of-sale for the following payment card networks:
|
| Transaction return policy | Card acceptance fees will be applied to transaction returns as follows:
|
| Code of conduct | The Code of Conduct can be accessed through the following link: http://www.fcac-acfc.gc.ca/Eng/forIndustry/publications/lawsReg/Pages/CodeofCo-Codedeco.aspx |
| Statements | Merchants can view their statements online by registering at www.abcacquirer.com. [Describe any applicable fees for the issuance of paper statement.] |
b. Example #2: All merchant–acquirer agreements with multiple related contracts—Information Summary Box
Note: This information summary box example is for illustrative purposes only. Participants should ensure that disclosure of key information set out in merchant–acquirer agreements with multiple related contracts is presented in a language that is clear, simple and not misleading. The headings on the left-hand side of the information summary box are provided by the Code and should not be altered. It is expected that the wording used in the information summary box will be reflected in merchant–acquirer agreement.
The information contained in the right column of the information summary box is intended for illustrative purpose only and DOES NOT purport to represent all of the information that is relevant to a merchant’s agreement for processing debit and credit card transactions.
| Information summary box | ||
|---|---|---|
| Date of contract(s) | Effective start date: June 1, 2015 |
|
| Acquirer | ABC Acquirer Inc. |
|
| Cancellation of contract(s) and applicable penalties | Merchant’s right to cancel Despite what the contract states on the merchant’s right to cancel, the merchant may cancel the contract without penalty in the event of:
To do so, the merchant must exercise this right within 90 days of the date of receiving notice of:
By sending notice to the acquirer to this effect to the person responsible for such matter under the contract for such matters. Other cancellation rights Describe any other cancellation rights outlined in the contract, including any applicable penalties. For example, the contract may contain a permission that allows the merchant may cancel the contract at any time by paying:
Cancellation procedures, including the person to contact for more information, can be found on page X of the contract, under the heading Cancelling the Contract. Contract renewals In the case of a fixed term contract, the term of the contract can only be extended automatically for a maximum period of six months per extension. This is despite any language in the contract to the contrary on renewals or extensions for longer periods. Notice of non-renewal Should the merchant not wish to renew the contract at the end of its term or any renewal period, he or she must provide the acquirer with notice of no less than ninety days prior to the end of the term or the renewal period. In the case of a variable term contract, the contract will expire if the merchant provides notice [insert particulars that describe the process for confirming the expiry of the term of the contract]. Other Separate terms, conditions and fees apply for point-of-sale terminal equipment. They are listed in the “Information About Payment Terminal” section. |
|
Complaint handling procedures |
Merchants complaints should be addressed to: ABC Acquirer Inc. customer support and can also be accessed through www.abca.com. ABC Acquirer Inc. customer support Or write to: |
|
Debit processing DEF Payment processor customer support Or write to: |
Credit processing MNO Payment processor customer support Or write to: |
|
| Information about payment terminal | Terminal leasing company name and contact information: XYZ Terminal Leasing Company customer support
☒ Rented ☐ Leased ☐ Purchased This provision does not create an obligation for all of these options (buy, lease, or rent) to be offered to a merchant by the Acquirer.
*Unless certain conditions are met to allow for waiving of the termination fee. For more details, see contract page X.* |
|
| Contactless payments acceptance | Contactless payments have been enabled at the point-of-sale for the following payment card networks:
|
|
| Transaction return policy | Card acceptance fees will be applied to transaction returns as follows:
|
|
| Independent sales organization or referral agent (where applicable) | Independent sales organization or referral agent contact information: JKL ISO |
|
| Information about credit and debit card service providers (if different from the acquirer) | Debit DEF Payment processor |
Credit MNO Payment processor |
| | Effective start date of the contract: Length of initial term: 5 years Effective contract renewal date: June 1, 2020 Merchant’s right to cancel Despite what the contract states on the merchant’s right to cancel, the merchant may cancel the contract without penalty in the event of:
To do so, the merchant must exercise this right within 90 days of the date of receiving notice of:
By sending notice to the acquirer to this effect to the person responsible for such matter under the contract for such matters. Other cancellation rights Describe any other cancellation rights outlined in the contract, including any applicable penalties. For example, the contract may contain a permission that allows the merchant may cancel the contract at any time by paying:
Cancellation procedures, including the person to contact for more information, can be found on page X of the contract, under the heading Cancelling the Contract. Contract renewals In the case of a fixed term contract, the term of the contract can only be extended automatically for a maximum period of six months per extension. This is despite any language in the contract to the contrary on renewals or extensions for longer periods. Notice of non-renewal Should the merchant not wish to renew the contract at the end of its term or any renewal period, he or she must provide the acquirer with notice of no less than ninety days prior to the end of the term or the renewal period. In the case of a variable term contract, the contract will expire if the merchant provides notice [insert particulars that describe the process for confirming the expiry of the term of the contract]. Other Separate terms, conditions and fees apply for point-of-sale terminal equipment. They are listed in the “Information About Payment Terminal” section. |
Effective start date of the contract: Length of initial term: 2 years Effective contract renewal date: June 1, 2017 Merchant’s right to cancel Despite what the contract states on the merchant’s right to cancel, the merchant may cancel the contract without penalty in the event of:
To do so, the merchant must exercise this right within 90 days of the date of receiving notice of:
By sending notice to the acquirer to this effect to the person responsible for such matter under the contract for such matters. Other cancellation rights Describe any other cancellation rights outlined in the contract, including any applicable penalties. For example, the contract may contain a permission that allows the merchant may cancel the contract at any time by paying:
Cancellation procedures, including the person to contact for more information, can be found on page X of the contract, under the heading Cancelling the Contract. Contract renewals In the case of a fixed term contract, the term of the contract can only be extended automatically for a maximum period of six months per extension. This is despite any language in the contract to the contrary on renewals or extensions for longer periods. Notice of non-renewal Should the merchant not wish to renew the contract at the end of its term or any renewal period, he or she must provide the acquirer with notice of no less than ninety days prior to the end of the term or the renewal period. In the case of a variable term contract, the contract will expire if the merchant provides notice [insert particulars that describe the process for confirming the expiry of the term of the contract]. Other Separate terms, conditions and fees apply for point-of-sale terminal equipment. They are listed in the “Information About Payment Terminal” section. |
| Code of conduct | The Code of Conduct can be access through the following link: http://www.fcac-acfc.gc.ca/Eng/forIndustry/publications/lawsReg/Pages/CodeofCo-Codedeco.aspx |
|
| Statements | Merchants can view their statements online by registering at www.abcacquirer.com. [Describe any applicable fess for the issuance of paper statement.] |
|
c. Example #3: All merchant–acquirer agreements with multiple related contracts—Information Summary Box
Note: This information summary box example is for illustrative purposes only. Participants should ensure that disclosure of key information set out in merchant–acquirer agreements with multiple related contracts is presented in a language that is clear, simple and not misleading. The headings on the left-hand side of the information summary box are provided by the Code and should not be altered. It is expected that the wording used in the information summary box will be reflected in merchant–acquirer agreement.
The information contained in the right column of the information summary box is intended for illustrative purpose only and DOES NOT purport to represent all of the information that is relevant to a merchant’s agreement for processing debit and credit card transactions.
| Information summary box | ||
|---|---|---|
| Date of contract(s) | Effective start date: June 1, 2015 Renewal date: June 1, 2020 |
|
| Acquirer | ABC Acquirer Inc. |
|
| Cancellation of contract(s) and applicable penalties | Merchant’s right to cancel Despite what the contract states on the merchant’s right to cancel, the merchant may cancel the contract without penalty in the event of:
To do so, the merchant must exercise this right within 90 days of the date of receiving notice of:
By sending notice to the acquirer to this effect to the person responsible for such matter under the contract for such matters. Other cancellation rights Describe any other cancellation rights outlined in the contract, including any applicable penalties. For example, the contract may contain a permission that allows the merchant may cancel the contract at any time by paying:
Cancellation procedures, including the person to contact for more information, can be found on page X of the contract, under the heading Cancelling the Contract. Contract renewals In the case of a fixed term contract, the term of the contract can only be extended automatically for a maximum period of six months per extension. This is despite any language in the contract to the contrary on renewals or extensions for longer periods. Notice of non-renewal Should the merchant not wish to renew the contract at the end of its term or any renewal period, he or she must provide the acquirer with notice of no less than ninety days prior to the end of the term or the renewal period. In the case of a variable term contract, the contract will expire if the merchant provides notice [insert particulars that describe the process for confirming the expiry of the term of the contract]. Other Separate terms, conditions and fees apply for point-of-sale terminal equipment. They are listed in the “Information About Payment Terminal” section. |
|
Complaint handling procedures |
Merchants complaints should be addressed to: ABC Acquirer Inc. customer support and can also be accessed through www.abca.com. ABC Acquirer Inc. customer support Or write to: |
|
Debit processing DEF Payment processor customer support Or write to: |
Credit processing MNO Payment processor customer support Or write to: |
|
| Information about payment terminal | Terminal leasing company name and contact information: DEF Payment processor customer support
☐ Rented ☒ Leased ☐ Purchased This provision does not create an obligation for all of these options (buy, lease, or rent) to be offered to a merchant by the Acquirer.
*Unless certain conditions are met to allow for waiving of the termination fee. For more details, see contract page X. |
|
| Contactless payments acceptance | Contactless payments have been enabled at the point-of-sale for the following payment card networks:
|
|
| Transaction return policy | Card acceptance fees will be applied to transaction returns as follows:
|
|
| Independent sales organization or referral agent (where applicable) | Independent sales organization or referral agent contact information: JKL ISO |
|
| Information about credit and debit card service providers (if different from the acquirer) | Debit DEF Payment processor |
Credit MNO Payment processor |
Effective start date of the contract: Length of initial term: 5 years Effective contract renewal date: June 1, 2020 Merchant’s right to cancel Despite what the contract states on the merchant’s right to cancel, the merchant may cancel the contract without penalty in the event of:
To do so, the merchant must exercise this right within 90 days of the date of receiving notice of:
By sending notice to the acquirer to this effect to the person responsible for such matter under the contract for such matters. Other cancellation rights Describe any other cancellation rights outlined in the contract, including any applicable penalties. For example, the contract may contain a permission that allows the merchant may cancel the contract at any time by paying:
Cancellation procedures, including the person to contact for more information, can be found on page X of the contract, under the heading Cancelling the Contract. Contract renewals In the case of a fixed term contract, the term of the contract can only be extended automatically for a maximum period of six months per extension. This is despite any language in the contract to the contrary on renewals or extensions for longer periods. Notice of non-renewal Should the merchant not wish to renew the contract at the end of its term or any renewal period, he or she must provide the acquirer with notice of no less than ninety days prior to the end of the term or the renewal period. In the case of a variable term contract, the contract will expire if the merchant provides notice [insert particulars that describe the process for confirming the expiry of the term of the contract]. Other Separate terms, conditions and fees apply for point-of-sale terminal equipment. They are listed in the “Information About Payment Terminal” section. |
Effective start date of the contract: Length of initial term : 2 years Effective contract renewal date: June 1, 2017 Merchant’s right to cancel Despite what the contract states on the merchant’s right to cancel, the merchant may cancel the contract without penalty in the event of:
To do so, the merchant must exercise this right within 90 days of the date of receiving notice of:
By sending notice to the acquirer to this effect to the person responsible for such matter under the contract for such matters. Other cancellation rights Describe any other cancellation rights outlined in the contract, including any applicable penalties. For example, the contract may contain a permission that allows the merchant may cancel the contract at any time by paying:
Cancellation procedures, including the person to contact for more information, can be found on page X of the contract, under the heading Cancelling the Contract. Contract renewals In the case of a fixed term contract, the term of the contract can only be extended automatically for a maximum period of six months per extension. This is despite any language in the contract to the contrary on renewals or extensions for longer periods. Notice of non-renewal Should the merchant not wish to renew the contract at the end of its term or any renewal period, he or she must provide the acquirer with notice of no less than ninety days prior to the end of the term or the renewal period. In the case of a variable term contract, the contract will expire if the merchant provides notice [insert particulars that describe the process for confirming the expiry of the term of the contract]. Other Separate terms, conditions and fees apply for point-of-sale terminal equipment. They are listed in the “Information About Payment Terminal” section. |
|
| Code of conduct | The Code of Conduct can be access through the following link: http://www.fcac-acfc.gc.ca/Eng/forIndustry/publications/lawsReg/Pages/CodeofCo-Codedeco.aspx |
|
| Statements | Merchants can view their statements online by registering at www.abcacquirer.com. [Describe any applicable fess for the issuance of paper statement.] |
|
6. Conclusion
This FCAC guideline is complementary to, and should be read in conjunction with, the FCAC guideline:
Each PCNO is responsible for ensuring full compliance with the Code by its Participants. FCAC may follow up with PCNOs to ensure that requirements have been met.
7. Contact us
Financial Consumer Agency of Canada
Supervision and Promotion Branch
427 Laurier Avenue West, 6th floor
Ottawa, ON K1R 1B9
Email: compliance@fcac.gc.ca
Fax: 613-941-1436
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