Canada Competition Bureau Blasts Visa, MC

By Hernandez, Will | American Banker, December 17, 2010 | Go to article overview

Canada Competition Bureau Blasts Visa, MC


Hernandez, Will, American Banker


Byline: Will Hernandez

Visa Inc. and MasterCard Inc. are alleged by the Competition Bureau in Canada to have imposed restrictive and anticompetitive rules on merchants who accept their cards.

In an announcement Wednesday, the bureau, which says it is an independent law enforcement agency intended to ensure "that Canadian businesses and consumers prosper in a competitive and innovative marketplace," challenged certain rules of the card companies under the price-maintenance provisions of the Competition Act. Lawmakers designed this antitrust law to maintain and encourage fair competition in Canada.

The bureau said in an application to the country's Competition Tribunal that it wants merchants to have the ability to encourage consumers to consider using less expensive payment options such as cash or debit.

It is challenging rules similar to those recently changed in the United States under the Dodd-Frank Act, which included the Durbin amendment affecting debit cards, said Celent senior analyst Zilvinas Bareisis.

Canadian merchants pay 1.5% to 3% of the purchase amount in credit card interchange, the bureau asserted. The Interac debit card network's fee is about 12 cents.

Melanie Aitken, the bureau's commissioner, said in a press release that the two leading card brands' rules impose higher costs on merchants that, in turn, pass on their costs to consumers. Canadian merchants pay an estimated $5 billion annually in hidden credit card fees, the bureau said.

"Without changes to the rules, merchants will continue to face high costs for credit card acceptance, while consumers, even those who use lower-cost methods of payment like debit or cash, will continue to pay higher prices," Aitken said in the release.

No hearing has been scheduled. Bureau representatives did not respond to a request for comment, nor did Visa Canada.

Visa and MasterCard prohibit merchants from surcharging purchases made with a card that costs them more in fees, and the bureau is asking that the ban be lifted. This particular challenge is one whose success, MasterCard Canada said, would hurt consumers.

"If these changes were implemented by the Competition Tribunal, the result would be to enrich merchants at the expense of consumers," Betty DeVita, MasterCard Canada president, said in a press release issued Wednesday in response to the Competition Bureau's allegations. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Canada Competition Bureau Blasts Visa, MC
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.