TORONTO, July 23, 2013 /CNW/ - Retail Council of Canada concurs with The
Competition Tribunal's finding that current rules imposed on merchants
by Visa and MasterCard have an adverse effect on competition. Although
disappointed the Tribunal failed to strike down the restrictive and
anti-competitive rules RCC agrees the problem is best addressed by
"Since 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," says
David Wilkes, Senior Vice President, 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. Totalling 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 3%
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.
"We believe that it is time for regulations to do what cannot be
addressed by either the market or voluntary guidelines," added Wilkes.
RCC looks forward to working with Canada's Minister of Finance to
review the state of the payments system, to address the card networks'
Retail Council of Canada (www.retailcouncil.org) is the Voice of Retail. Founded in 1963, RCC is a not-for-profit
association which represents more than 45,000 stores of all retail
formats, including department, grocery, independent merchants, regional
and national specialty chains, and on-line merchants.
SOURCE: Retail Council of Canada
For further information:
SVP, Marketing and Communications
Retail Council of Canada
Direct: 416 467-3747
Cell: 416 574 2552