Summary#
This bill changes the Payment Card Networks Act to let the federal Cabinet (Governor in Council) set a legal cap on credit card acceptance fees that a payment card network operator can charge a merchant. It also lets the Cabinet define what “credit card acceptance fees” mean and create categories of users for different caps (Bill, Credit Card Acceptance Fees Limit (1)-(2)).
- Lets the government cap the fees networks charge merchants for accepting credit cards (Bill, Credit Card Acceptance Fees Limit (1)).
- Allows the government to define “acceptance fees” by regulation (Bill, Regulations (2)(a)).
- Allows different fee limits for different categories of users, to be set by regulation (Bill, Regulations (2)(b)-(c)).
- No cap takes effect until regulations are made; the bill itself sets no numbers (Bill, Regulations (2)).
What it means for you#
- Households
- No immediate change. The bill creates authority to make fee caps later. Any effects on retail prices or card rewards would depend on future regulations and market response. Data unavailable.
- Small businesses and other merchants
- No immediate change. If regulations are issued, network fees you pay to accept credit cards could be capped, with possible different limits by merchant category (Bill, Credit Card Acceptance Fees Limit (1); Regulations (2)(b)-(c)).
- What counts as an “acceptance fee” will be defined later. The scope (which fee components are covered) is not yet known (Bill, Regulations (2)(a)).
- Payment card network operators (e.g., credit card networks)
- Would have to comply with any cap set by regulation for each user category (Bill, Credit Card Acceptance Fees Limit (1); Regulations (2)(b)-(c)).
- Could face new reporting or compliance steps if required by future regulations. Data unavailable.
- Card issuers, acquirers, and processors
- Indirect effects are possible depending on how “acceptance fees” are defined and capped in regulations, but the bill itself does not change their fees (Bill, Regulations (2)(a)). Data unavailable.
- Timing
- The bill sets no effective date for fee limits. Caps would start only after the government issues regulations. Data unavailable.
Expenses#
Estimated net cost: Data unavailable.
- The bill includes no direct spending or appropriations. It only grants regulation-making power (Bill, Credit Card Acceptance Fees Limit (1)-(2)).
- Any government administrative cost to develop and enforce regulations is not stated. Data unavailable.
- No official fiscal note identified. Data unavailable.
Proponents' View#
- Creates a clear legal tool to cap credit card acceptance fees, rather than relying on voluntary measures (Bill, Credit Card Acceptance Fees Limit (1)-(2)).
- Allows targeted relief by setting different limits for different user categories, which could include small merchants if defined that way (Bill, Regulations (2)(b)-(c)). Assumes categories will be designed to aid smaller businesses.
- Could lower merchants’ card acceptance costs if caps are set below current fee levels (Bill, Credit Card Acceptance Fees Limit (1)). Assumes regulated caps reduce average fees paid.
- Provides flexibility to define what fees are covered, which can close loopholes if fee structures change over time (Bill, Regulations (2)(a)). Assumes regulations will cover the main fee components.
Opponents' View#
- High uncertainty: the bill sets no numbers, definitions, or timelines. The real impact depends entirely on future regulations (Bill, Regulations (2)).
- If “acceptance fees” are defined narrowly, total costs to merchants might not fall much, as other uncapped fee components could rise. This depends on the final definition (Bill, Regulations (2)(a)).
- Caps could prompt networks or issuers to adjust other charges (e.g., cardholder fees or reduced rewards). This is a common risk in price regulation but is not required by the bill. Assumes revenue shifts occur.
- Complex category design could create uneven treatment across merchants and add compliance burdens if many categories are created (Bill, Regulations (2)(b)-(c)). Assumes detailed categorization.