Senate reviews credit and debit card fees

(Apr. 21/09) Following months of lobbying from CRFA and other business associations, the Senate began its study of the credit card industry in Canada and the fees charged to merchants and consumers, as well as the role of Interac in the Canadian payment system.  Since hearings began in late March, the Senate Committee on Banking, Trade and Commerce has heard testimony from government officials, consumer groups, payment card processing companies, and banks and credit unions.

At the hearings, the Competition Bureau publicly announced that it is currently investigating both Visa and MasterCard for alleged violations of the Competition Act.  The investigation is focused on how both companies set “interchange fees.”  CRFA reported its concerns about Visa and MasterCard’s business practices to the Competition Bureau last September.  The Bureau has confirmed to CRFA that it is examining possible price maintenance and anti-competitive practices of both companies.  

This week, the committee will hear from Interac, Visa and MasterCard as well as a number of merchants.  CRFA continues to work closely with other merchant groups to share information and coordinate efforts, and will be providing a written submission to the committee explaining how the unfair practices of credit card companies and banks are leading to significant increases in costs for restaurant operators – and to higher menu prices for consumers.  According to an online survey on the CRFA.ca website, foodservice operators reported a 24% jump in credit card processing fees between the end of 2007 and 2008.

CRFA continues to meet with government officials, MPs and Senators to raise  awareness about this issue and to ensure that:



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