New credit card rules a positive first step
FOR IMMEDIATE RELEASE
May 21, 2009
TORONTO – Restaurant owners across Canada support Minister Flaherty’s announcement today as a first step in establishing the rules of play for credit cards in Canada.
While the announcement focused on protection for cardholders, the Minister recognized concerns about the interchange fees that merchants pay as well. Minister Flaherty said his government is closely following the committee hearings in the House of Commons and will be able to act quickly on their recommendations.
“We are thrilled that the Minister recognizes there are two types of credit card consumers: those who use cards to make payments and those who accept payments by credit card,” says Justin Taylor, Vice President Labour and Taxation for the Canadian Restaurant and Foodservices Association (CRFA). “In our view, both groups deserve government protection against unfair practices of credit card companies.”
The Senate recently concluded a study on credit cards and related fees with a report expected shortly. Ongoing hearings by a joint Industry and Finance committee of the House of Commons have exposed the complex and skyrocketing fees that restaurants are charged every time they accept payment by credit cards.
“We don’t normally go looking for government regulation,” says Taylor. “But what we have in Canada is a duopoly, where Visa and MasterCard dominate the credit card industry. Combined with an absence of government oversight, this has led to significant increases in fees and unfair business practices by banks, credit card companies and payment processors.”
One of Canada’s largest business associations, CRFA represents independent and chain restaurants, bars, contract and social caterers, hotels and other foodservice providers. CRFA is also a member of the StopStickingItToUs Coalition, a group representing more than 250,000 businesses from coast to coast with a common goal of ensuring that Canadians can participate in a fair, transparent and convenient card payments system.
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