Merchants will get clear information on fees and rates and advance notice of new fees and increases. (iStock)

The federal finance minister says the Code of Conduct for the Credit and Debit Card Industry has been widely adopted by the industry.

Finance Minister Jim Flaherty says all the payment card networks, major credit and debit card issuers and payment processors have adopted the code, which will be effective starting Aug. 16.

Under the code, merchants will be given clear information regarding fees and rates and given advance notice of any new fees and fee increases.

They will also be able to cancel contracts without penalty if fees rise or if new fees are introduced.

Under legislation currently before Parliament, the mandate of the Financial Consumer Agency of Canada will also be expanded to allow the agency to monitor compliance with the code.