CLIH Cross border Issues

www.canadianlawyermag.com/inhouse 13 Payments technology In the payments technology space, lawyers must consider various legal issues concerning customer data, privacy and liability in the event of a data breach. In-house counsel must also navigate commercial issues for matters such as fees, contracts and exclusivity commitments. "The first step is to understand where you fit into the payment ecosystem, and then you will understand what questions to ask in terms of who is touching your data and who is responsible for obtaining customer consent," says David Feldman, a partner at Blakes. Different players within the payments technology ecosystem will face varying challenges. While large players may have all the security measures in place, newer entrants to the market may not have the same controls. "It's important at the outset to understand who you are doing business with, so you can conduct appropriate due diligence and select the right partners and the right suppliers for your payments system," says Feldman, who works with several large banks and other financial institutions. Feldman recommends engaging experts to monitor data security practices and setting up a secure, fast and reliable system. This system will also protect the company from risks and liabilities that may arise. Interac Corp. is busy preparing for the arrival of Canada's Real-Time Rail, as the network provider takes on a new role as a vendor to Payments Canada. The system is expected to launch in 2022 and will offer live, irrevocable payments around the clock as part of the government's vision for a modern- ized payments system. "The role of the Interac legal department must naturally shift and adapt to meet our obligations," says Cindy Cross, chief legal officer at Interac. "Building trust in the system will be a key challenge to ensuring Canadians feel confident in using RTR once it is live." Cross says that protecting the interests of Canadians remains paramount for Interac as choice and convenience increase through the expansion of real-time payments and in other areas such as digital ID. "Interac will draw on our competitive advantages, including connections to nearly 300 financial institutions, deeply integrated platforms, products and services, and our trusted brand," says Cross. With new entrants coming into the market regularly, Feldman anticipates the rise of other technologies in the payment space. People are always looking for ways to make the payment process easier and safer, he says. "The industry is changing rapidly. So, I think that underscores the importance of working with people in the industry who understand the issues and the evolving landscape from a business perspective as well as from a legal perspective," says Feldman. "If anything does go sideways and it's the fault of the service provider, your recourse is going to be significantly restrained by the liability terms." Robert Percival, Blake, Cassels & Graydon LLP

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