Published On Fri Mar 5
Dana Flavelle
Business Reporter
A new legislation is being proposed today in Ottawa that will hand the authority to regulate the debit and credit card industry to the federal finance minister. Current finance minister, Jim Flaherty replied saying the will only use his authority on this matter if the credit and debit card industry will not comply with a proposed voluntary code of conduct. Meanwhile, the government also proposed budget documents so that the Federal Agency of Canada can monitor the credit and debit card industries compliance to the code of conduct.
Ottawa also said that they will form a task force to review the of the Canadian payment system. They are mandated to review the level of competition, oversight, innovation and benefits to consumer and business alike and to submit a report of their review by the end of 2011.
Diane Brisebois, Retail council of Canada's president and chief executive officer and the Stop Sticking It To Us Coalition 's President said that it nis a huge victory for them because it showed that the government knows that the system is broken.
The Canadian Federation of Independent Business said that they welcomed the measures but the small business groups said that the agency does not have enough guts to enforce the code through the industry.
The code of conduct was drafted in November as government's response to growing number of complaints from small business owners and retailers over rising interchange fees.
Business entrepreneurs say interchange fees have been getting out of control. Business owners also fear that the same thing could also happen to debit cards as MasterCard Visa prepare to enter the comparatively low-cost debit market in Canada.
VIA The Star
Keyword: Credit cards
