In a consultation paper entitled “A New Retail Payments Oversight Framework” released on July 7, 2017, the Department of Finance proposed a federal oversight framework that would apply to payment service providers such as Fintech entities in the payment space as well as more traditional payment entities such as merchant acquirers. On McCarthy Tétrault’s Cyberlex Blog, Ana Badour and Kirsten Thompson provide an overview of the consultation paper.
Key elements of the framework which may be of interest to readers of the Consumer & Retail Advisor blog include the registration requirement for payment service providers, end-user fund safeguarding measures, operational standards and an increased emphasis on privacy. It is noteworthy that certain types of transaction, such as transactions made with instruments that allow the holder to acquire goods or services only at the premises of the issuing merchant (e.g., store cards) or within a limited network of merchants that have a commercial agreement with an issuer (e.g., shopping mall cards) are however specifically excluded.
Comments on the Consultation Paper are due October 6, 2017.