CRFA's Federal Lobbyists
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Joyce Reynolds Executive Vice President, Government Affairs T: 1-800-387-5649 ext. 4219. E: jreynolds@crfa.ca |
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Justin Taylor Vice President, Labour and Supply T: 1-800-387-5649 ext. 4214 E: jtaylor@crfa.ca |
Federal budget responds to credit card concerns
(Mar. 7/10) The March 4 federal budget included good news on the issue of credit card fees. Ottawa responded to CRFA’s call for federal oversight of credit card companies by announcing that a federal agency will ensure these companies comply with a voluntary Code of Practice.
Last November, the federal government proposed a voluntary Code of Practice for credit card companies, which was welcomed by CRFA as an important first step in controlling ever-increasing merchant fees. Once the Code is finalized – which the government says will happen “shortly” – the Financial Consumer Agency of Canada will begin monitoring compliance and effectiveness.
The 2010 federal budget also states the government is prepared to regulate the market conduct of the credit and debit card networks and their participants, if necessary.
In addition, the government will appoint an independent task force to review the Canadian payments system and make recommendations to the Minister by the end of 2011. The Task Force is mandated to review:
- the safety, soundness and efficiency of the payments system;
- whether there is sufficient innovation in the system;
- the competitive landscape;
- whether business and consumers are served well; and
- whether current payment system oversight mechanisms remain appropriate.
CRFA has long advocated for greater government oversight of the credit and debit card payment system in Canada to ensure reasonable and predictable fees and fair business practices. Click here for CRFA’s comments and recommendations on the Code of Practice.
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