Hey there, time traveller!
This article was published 14/2/2013 (1557 days ago), so information in it may no longer be current.
A federal consumer watchdog says some credit and debit card payment companies are breaking rules it created to protect retailers, which in turn could be costing Canadians more money.
The Financial Consumer Agency of Canada issued a warning to the industry on Wednesday that it will not tolerate payment companies who mislead merchants into paying hidden fees or lock them into confusing contracts.
The concerns stem from a code of conduct introduced by the federal government nearly three years ago designed to encourage further clarity in the contracts signed between retailers and credit and debit card companies.
But the agency said it found some payment companies, which it did not name, have been misrepresenting the terms of contracts with merchants by advertising and promising rates that they were unable to honour.
"Over the past year, we have seen certain practices by some in the industry that undermine the letter and spirit of the code," said commissioner Ursula Menke in a release.
"This guidance is meant to address these issues by providing better disclosure to merchants and eliminating inappropriate sales and business practices that result in increased costs for merchants, and consequently for consumers as well."
The agency said its investigation found some merchants signed agreements that they later discovered were linked to additional contracts that had different cancellation clauses, penalty fees or costs associated with them.
While the merchant was able to cancel the agreement without penalty, the agency said they were still locked into paying additional fees to cancel the other contracts.
-- The Canadian Press