TORONTO, July 23, 2013 /CNW/ - The Canadian Federation of Independent
Business (CFIB) is disappointed the Competition Tribunal ruled against
the case put forward by the Competition Bureau on Visa and MasterCard
practices. Small businesses were hoping the case would be successful
and provide merchants new powers to push back against rapidly rising
fees imposed by Visa and MasterCard to process credit cards.
"While the decision is disappointing, CFIB is pleased the Competition
Tribunal recognized the adverse effect Visa's and MasterCard's policies
have had on competition," said CFIB president Dan Kelly. "The Tribunal
has also suggested a regulatory solution."
CFIB is now asking the Federal Government to work with merchants on
additional provisions to the Code of Conduct for the Credit and Debit Card Industry to address merchants' concerns.
"We are particularly disappointed by the decision as US small firms
recently gained the ability to surcharge through an out-of-court
settlement with Visa and MasterCard," said Kelly. "Given Visa and
MasterCard agreed to allow surcharging in the US, we expect that
Canadian merchants should be allowed the same powers."
"Consumers and merchants are on the same side of this dispute. Very few
Canadians know that they pay $5-7 billion each year in credit card
processing fees embedded in the cost of everything we buy", added
Kelly. "This isn't the outcome we were hoping to see, but entrepreneurs
can rest assured that CFIB isn't going away. We're going to keep
fighting against unfair practices by the credit card giants."
CFIB reminds consumers that paying with Interac debit or cash is one
small way they can help small businesses. In addition, merchants can
find special signage to promote paying with Interac or cash at www.cfib.ca/debitcredit.
CFIB is Canada's largest association of small and medium-sized
businesses with 109,000 members across every sector and region.
SOURCE: Canadian Federation of Independent Business
For further information:
Gisele Lumsden at 416-222-8022 or by email at firstname.lastname@example.org.