Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

CNP EXPO Payvision on Navigating the Canadian Waters

744 views

Published on

This presentation focuses on three key issues centering on the Canadian Card Not Present market. The CNP market in Canada offers companies in the Payment chain a fantastic opportunity with intriguing challenges. An evolving market with new technologies, regulatory changes, products and services makes a local resource with the right contacts and with the right understanding of the Canadian market paramount.

First, we take a closer look at the Canadian Code of Conduct and what it means to new PSPs and ISOs looking to enter the Canadian market. Second, we will focus on Visa Debit vs Interac Debit online and which is the preferred payment for Canadian customers. Third, we will look at the challenges of the Mobile payments industry in Canada.
A better understanding of these issues will give entrants into Canada a more accurate picture of the local market expectations.

Published in: Technology
  • Be the first to comment

  • Be the first to like this

CNP EXPO Payvision on Navigating the Canadian Waters

  1. 1. Cross Border eCommerce Navigating the Canadian Waters CNP EXPO 2014 | GRAD SCHOOL | 19TH OF MAY Ish Nabhan, VP of Sales Canada, Payvision Warren Lusk, Product and Business Development Manager, PSI Gate/ Hometrust
  2. 2. Canadian CNP Market The CNP market in Canada offers companies in the Payment chain a fantastic opportunity with intriguing challenges. An evolving market with new technologies, products and services makes a local resource with the right contacts and with the right understanding of the Canadian market paramount. Lets take a look at few of the current topics in the CNP space: 1. Code of Conduct 2. Visa Debit - Interac Debit Online 3. Mobile payments
  3. 3. Code of Conduct In 2010, the Canadian government released a code of conduct for the Credit and Debit Card Industry in Canada. (see Credit and Debit Industry –Code of Conduct) The purpose of the code was to demonstrate the Industry’s commitment to transparency and choice. These specific policy elements (rule 1., 3., 10) will provide the CNP market an opportunity for the following:
  4. 4. Code of Conduct Transparency (1.) Increased Transparency and Disclosure by Payment Card Networks and Acquirers to Merchants  Displaying effective merchant discount rate for each type of payment card from a payment card network  Displaying interchange rates and, if applicable, all other rates charged to the merchants by the acquirer  Outlining the number and volume of transactions for each type of payment transaction  Outlining the total amount of fees applicable to each rate  Outlining the details of each fee and to which payment card network they relate to
  5. 5. Code of Conduct CHOICE: (3.) Payment card network rules will ensure that merchants will receive a minimum of 90 days notice of any fee increases or the introduction of a new fee related to any credit or debit card transactions. Payment card networks will provide at least 90 days notice to acquirers for rate and / or fee changes and at least 180 days notice for structural changes (10.) Payment card network rules will ensure that negative option acceptance is not allowed.(Must opt-into Visa Debit)
  6. 6. Debit : Visa Debit Facts Launched in Canada January 2011 with +30,000 merchants enabled Several million cards and growing across 3 issuers, 4th expected in Summer 2014 Participating merchants have seen an average 32% increase in Canadian Visa Debit transactions vs. non-participating merchants in a previous campaign, per Visa Challenges: Requires gateways to filter debit for those that do not wish to accept MasterCard announced expected cards market 2015 Included in Code of Conduct; Merchant must opt-in Higher cost compared to Interac: % vs. cents per transaction
  7. 7. Debit: Interac Online Independent Member Institution with a closed loop system. Debit card issued by member banks Primary accepted form of CP transaction with heavy penetration In CP environments, Interac is the preferred method of payment, however, challenges exist for CNP market Challenges: Online experience creates negative adoption EMV only solution means limited Mobile penetration
  8. 8. Mobile Payments Being able to process payments via your mobile payments device allows merchants to accept payments anytime, anywhere. Ideal solution for micro to small merchants looking for a mobile solution Ideal solution for specific vertical industries o Maintenance, Service trades, trade shows, tour operators/excursions, Roughly, 8-10 different mobile payments providers in market with flat fee pricing to $ volume pricing Challenges: Credit only, mag stripe transactions No current practical EMV (Interac) solution (Cost, market demand) Visa Debit is pushed to Debit as E-com
  9. 9. Thank you! E-mail: i.Nabhan@payvision.com; warren.lusk@psigate.com

×