Platform Legal Obligations
As a partner platform to WePay, you have certain legal obligations to your merchants who use WePay which you must comply with:
These requirements may stem from applicable law, our transaction processors, card networks and member banks. Collecting each merchant’s agreement with WePay Terms of Service and disclosure of applicable fees to each merchant are the first steps to compliance.
WePay requires the following elements of an electronic signature:
- Login credentials
- Date/time stamp
- IP address
You should collect these at the time that your merchant clicks “Accept” or otherwise indicates agreement with your Terms of Service and the WePay Terms of Service.
The details of platform responsibility in collecting agreements and enabling accessibility depends on the onboarding API that you’ve integrated.
- Collecting agreements: No platform action required.
- Enabling accessibility: Platform action required:
Collecting agreements: Platform action required.
Your own Terms of Service must contain language substantially similar to the following (substituting your own name for [Platform] wherever it appears) below:
Enabling accessibility: No platform action required.
Fee disclosures provides transparency between the platform, the merchant, and the payer and encourages brand trust and loyalty. It is a fundamental principle of fair business practice that fees be clearly disclosed prior to the time when the purchaser makes the decision to buy a service, such as payment processing. During the onboarding workflow for merchants and payers, applicable fees should be displayed so that the user can take them into account when deciding whether or not to purchase the payment service. Furthermore, the fees should be accessible for review after payer and merchant initiation via terms of service, terms and conditions, dedicated fee disclosure documentation, or equivalent.
Fees described should include payer fees, merchant fees, app fees, chargeback fees, fees associated with refunds or any other fees relevant to WePay and payment processing. If the platform is processing payments with WePay in the United Kingdom or Canada, the fees applicable to those markets should be disclosed.
Here is a sample fee disclosure:
Processing fee for each transaction is [2.9]% + $0.30.
Other fees may apply, as applicable:
$15.00 per chargeback (in addition to the amount of the chargeback).
$15.00 per ACH return (in addition to the amount of the return).
$25.00 research fee if an account is deemed abandoned.
Refunds: if a merchant refunds a payment in full, WePay and [Platform] will return its fees. If a merchant refunds a payment in part, neither WePay nor [Platform] will return its fees.
For usage in sites based in Canada, the FCAC (Financial Consumer Agency of Canada) requirement is that all merchant–acquirer agreements1 will include a cover page containing the following using FCAC templates:
- Information Summary Box: No platform action required.
The Information Summary Box contains key elements of the merchant contract. This box is already presented at the top of WePay Canada Terms of Service, which merchants agree to as a function of onboarding. Therefore no partner action required for compliance.
- Fee Disclosure Box: Platform action required.
Platform needs to display the Fee Disclosure Box at the top of merchant/user agreement OR during onboarding where fees are currently presented to the merchant/user/payee. The entire Fee Disclosure Box should be placed where fees are presented during onboarding, or there should be a prominent link (with the words ‘Required regulatory disclosure of fees in Canada’) to the Fee Disclosure Box.
Please note the following:
- As required by FCAC2, this exact template needs to be used.
- The template is already pre-populated with the card types that platforms accept in Canada as a function of using WePay, which are all Visa, Mastercard and Amex cards.
- IMPORTANT: Fees vary by platform and each platform needs to ensure their fees are accurately shown in the box. These are the fees the platform charges the merchant (payee) for accepting card payments.
- A platform may have multiple fees for different services they provide. This box should only contain the card payment processing fees as presented to the merchant (payee). If the platform does not separately list card payment acceptance fees, and instead have a single bundled fee for all their services, then that fee should be displayed in this box because the fee includes card payment acceptance.
- To be clear, the fees to be displayed in this box are not platform’s or WePay’s cost of processing card payments. The fees to be displayed are those charged to the merchant (payee) for card payment acceptance.
- Even where fee is same regardless of card product type, as in the template below, FCAC requirement is that all the card product types have to be listed. In our case, platforms will have the same fees irrespective of card brand or type. Possible exception is that Amex cards may carry different fees and should be reflected accordingly in the box.
Required regulatory disclosure of fees in Canada:
Fees Disclosure Box
|Payment card type||Processing Method: Card Not Present|
|(These are the most common domestically issued card types and processing methods. They do not represent all the possible fees and variations that are charged to the merchants.)||(Means that the card/device was not electronically read. Generally, the card information is manually key-entered, e.g. online payment.)|
|Visa Consumer Credit||2.9% + CA$0.30|
|Visa Infinite||2.9% + CA$0.30|
|Visa Business||2.9% + CA$0.30|
|Visa Business Premium||2.9% + CA$0.30|
|Visa Corporate||2.9% + CA$0.30|
|Visa Prepaid||2.9% + CA$0.30|
|Visa Debit||2.9% + CA$0.30|
|MasterCard Consumer Credit||2.9% + CA$0.30|
|MasterCard World||2.9% + CA$0.30|
|MasterCard World Elite||2.9% + CA$0.30|
|MasterCard Business/Corporate||2.9% + CA$0.30|
|MasterCard Debit||2.9% + CA$0.30|
|MasterCard Prepaid||2.9% + CA$0.30|
|American Express||2.9% + CA$0.30|
|Other Fees Disclosure Box|
- 1According to FCAC definition, “Acquirers are entities that enable merchants to accept payments by credit or debit card, by providing merchants with access to a payment card network for the transmission or processing of payments.” Therefore this is a compliance requirement on both WePay and platforms.
- 2FCAC has provided more details about Fee Disclosure Box here.
You must be able to provide and maintain links to pages where the above requirements are met. You may be required to present to WePay a working URL to the public facing documentation where WePay terms of service are accessible as well as the flow a payer and payee goes through when using your platform. This can be satisfied with a demo or screenshots of your site and application. If any of the requirements are accessible post-authentication, test credentials should be made available to WePay allowing access to the documentation.
Last Updated: June 21, 2019