Castlegar, BC – NDP MP Alex Atamanenko is concerned that the major credit card companies are taking advantage of small businesses and the Canadian public by exploiting loopholes that keep the true cost of skyrocketing credit card fees hidden.
“It is not right that Canada is one of the few industrialized countries in the world that doesn’t regulate credit card fees with the result being that these fees have been raised unreasonably. Businesses, in order to survive, have no choice but to pass along the increases to consumers in the form of higher prices,” said Atamanenko.
According to the Retail Council of Canada, Interac, which has been delivering an efficient, transparent and low-cost debit card system, is planning to re-structure and thus will become as expensive as credit cards.
“Like many merchants and small business owners, I have seen the fees for accepting credit cards grow out of control over the past year,” Fred Boyd, manager of Buy-Low Foods in Grand Forks stated. “Credit card companies lined their pockets with more than $4.5 Billion in these fees last year alone and have increased them up to four times already in 2008, with more increases on the way.”
Rose Nylander, of Rosie’s Wine in Greenwood, is very concerned, as are other business owners in her community. She has been circulating a petition to present to the Retail Council of Canada.
In support of Canadian small businesses, Atamanenko will be sending a letter to the federal Minister of Finance, the Honourable Jim Flaherty.
“It’s time for our federal government to step in and ensure that credit card fees are reasonable,” Atamanenko said. “I urge the Minister to direct the Competition Bureau to intervene with Interac’s plan to re-structure and change its fee structure.”
“Currently, Interac is a not-for-profit business with fees charged only to cover its costs. There is no reason to allow these proposed and potentially devastating changes to a system that has served Canadians well for many years,” said the BC Southern Interior MP.