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Merchants Respond To Flaherty Announcement Of New Rules For Credit Card Companies

Toronto, May 21 – New credit card rules announced today by Finance Minister Jim Flaherty are an important first step to confronting the power of the credit card companies, but the federal government will also need to address the concerns of Canadian merchants, says Diane Brisebois, President of the Retail Council of Canada and Chair of the StopStickingItToUs coalition, representing over 250,000 Canadian businesses.

"We are pleased that the Minister has taken these steps today," Ms. Brisebois commented. "It demonstrates that the federal government recognizes just how serious the problem has become. We have made the Minister aware that merchants also need help urgently. Our members have no power to contain the fees that the credit card duopoly imposes on them; many have seen double-digit cost increases in the last year. It will be vital to the success of today's measures to ensure that the credit card duopoly doesn't follow its usual practice and pass these costs on to merchants and consumers in the form of hidden fees."

"The Minister has told us that he is paying very close attention to Parliamentary hearings on the matter and we are optimistic that he will act decisively following the reports of the House and Senate committees", Ms. Brisebois noted.

Ms. Brisebois said that today's announcement is part of a visible trend by governments to respond to recent abuses. "This announcement aimed at consumers, reflects the concerns Members of Parliament have been hearing in recent months. This week the U.S. Congress passed legislation restraining credit card abuse in that country. Countries like Australia have already moved to restrict charges to merchants as well. It's clear governments are getting the message that the power of the credit card companies must be addressed."

The Retail Council appeared last week in Parliamentary hearings in Ottawa and will continue to call for restraint of fast-rising credit card charges to merchants, as well as protection of the Canadian debit system, Interac.

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