RCC backs credit card fee decision
July 24, 2013 By Canadian Garden Centre & Nursery
July 24, 2013, Toronto – Although disappointed that the Competition Tribunal failed to strike down the rules Visa and Mastercard impose on merchants, the Retail Council of Canada concurred that the problem should be addressed by regulation.
The Competition Tribunal dismissed the case on July 23.
the Stop Sticking It to Us Coalition was launched in September, 2008,
RCC has been a strong and consistent voice in calling for regulation to
address the problems identified by the tribunal," said David Wilkes,
senior vice-president of government relations and grocery at RCC.
"Despite today's ruling, the fact remains: Canadians are paying more
than they should be at the register because of these high fees.
Totaling more than $6 billion annually, these fees have a negative
effect on merchants and consumers alike."
By way of example, a
$400 purchase on a credit card carrying a fee of three per cent costs
the merchant $12 for the transaction, an amount 100 times greater than
the 12-cent fee that would have applied had the transaction been
completed with an Interac debit card.
Worldwide, policymakers are
moving to cap exorbitant credit card acceptance fees. Australia and
New Zealand have had credit card fee caps for several years and the
European Union announced fee caps earlier this month. In the United
States, legislators have also moved to contain debit card fees.
believe that it is time for regulations to do what cannot be addressed
by either the market or voluntary guidelines," said Wilkes.
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