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.

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. 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. 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. 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. 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. 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. 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. 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. Thank you!
E-mail: i.Nabhan@payvision.com; warren.lusk@psigate.com