Code of conduct
In April 2010, Canada’s Minister of Finance introduced the Code of Conduct for the Credit and Debit Card Industry in Canada. The purpose of this initiative, which Desjardins fully supports, is to ensure merchants are fully aware of the costs associated with accepting card payments.
The payment networks such as Visa, Mastercard and Interac®, as well as card issuers and acquirers such as Desjardins, are all governed by this Code of Conduct.
01 Objectives of the Code of Conduct
- Ensure that merchants are fully aware of the costs associated with accepting credit and debit card payments thereby allowing merchants to reasonably forecast their monthly costs related to accepting such payments.
- Provide merchants with increased pricing flexibility to encourage consumers to choose the lowest-cost payment option.
- Allow merchants to freely choose which payment options they will accept.
02 Desjardins and the Code of Conduct
Desjardins was very active in implementing the Code of Conduct with the payment networks and other stakeholders, and we are proud to follow it. Desjardins's practices have always included simple, clear pricing with no surcharges or hidden fees, and clear, easy-to-understand account statements.
03 What the Code of Conduct changed for merchants
Notice must be sent to merchants at least 90 days prior to any fee changes with regard to credit or debit card transactions. Once the notice is received, merchants have 90 days to terminate their contract penalty-free.
This policy has been in effect at Desjardins since August 2010.
04 More about interchange
Interchange rates are determined by the Visa and Mastercard payment networks and apply to purchase transactions made with Visa and Mastercard cards. Acquirers such as Desjardins pay these fees to card issuers. Interchange fees are among the many components taken into account when setting merchants' discount rates.
Find out your effective rate
The Code of Conduct requires the effective rate to be included on the account statement. The effective rate is the rate actually paid by the merchant for each type of card from each payment network, including all fees charged to the merchant for this type of card.
How to calculate the effective rate
The effective rate is calculated by dividing the total of the fees for processing a type of card by the total volume of sales for that type of card. For Interac®, the fees included in the effective rate calculation are the per-transaction fees. For Visa and Mastercard, the discount fees and network fees are included in the calculation.
Desjardins's discount rate matches your real effective rate. That means that the discount rate never changes based on the payment network interchange fees. To be even more clear, and in compliance with the recommendations of the Code of Conduct, a table presenting your effective rate for each payment network is included with your account statement. Take a look!