Oct. 20, 2008 - Today, as Canada kicks-off Small Business Week,
Retail Council of Canada (RCC) and its StopStickingItToUs coalition
representing over 120,000 Canadian businesses, the majority of them small and
mid size enterprises, encourage federal political leaders to address the more
than $4.5 billion in hidden credit cards fees Canadians pay each year by
incorporating the issue into their consumer protection agendas.
The coalition
applauds the strong commitment all parties made to enact consumer protection
measures during the recent election campaign and is prepared to work with
government to protect consumers and small businesses from skyrocketing credit
card fees.
RCC and the StopStickingItToUs coalition also call on credit card
companies for a moratorium on new fees, additional fee increases and the
introduction of new premium cards as government considers its options on the
issue.
"At a time when the world's economy is so uncertain, Canadians want to
know their elected representatives will protect their hard-earned dollars,"
says Diane J. Brisebois, President and CEO of Retail Council of Canada. "They
are looking for action to expose hidden credit card fees that drive up the
cost of everyday purchases."
"Interchange fees", represent an enormous cost for average Canadians and
any organization that accepts payment by credit card - small businesses and
retailers, charities, schools, restaurants, hotels, government services and
others.
The average Canadian household pays hundreds of dollars a year in
interchange fees without even knowing it as they are a hidden portion of the
cost of virtually every transaction they make.
Federal political leaders can help average Canadians and the small
businesses at the heart of their communities by taking action against credit
card fees.
If swift action is not taken, small businesses and the jobs they
provide could be at greater risk in addition to the impact on Canadians'
tightening budgets.
The fees retailers, restaurants, charities and others pay the Big Credit
Card companies and the banks issuing their cards are among the highest in the
world, averaging 2 per cent on every purchase. That means that a $100 purchase
costs small businesses two dollars or more, which goes directly to the Big
Credit Card Companies and their issuing banks. C
Compare that to a small
business in Australia, who is charged 45 cents on the same $100 transaction,
or in the UK where they pay 79 cents - these countries and a host of others
regulate credit card fees.
Dozens of countries around the world - the U.S., Australia, Colombia,
Hungary, Romania and Spain - are investigating the big credit card companies'
fee practices. The StopStickingItToUs coalition calls on federal political
leaders to expose hidden credit card fees in Canada and stand-up for small
businesses, their employees and the ordinary Canadians they serve StopStickingItToUs Coalition members include:
- Retail Council of Canada
Alberta Liquor Store Association
- Canadian Booksellers Association
- Canadian Convenience Stores Association
- Canadian Council of Grocery Distributors
- Canadian Federation of Independent Grocers
- Canadian Jewellers Association
- Canadian Restaurant and Foodservices
Association
- Hotel Association of Canada
- Ontario Accommodation Association
- Ontario Restaurant Hotel and Motel Association
- Retail B.C
- The Canadian Independent Petroleum Marketers Association
- The British Columbia Restaurant and Food Services Association
- The Retail Merchant's Association of Canada (Ontario)
- Wine Council of Ontario
Mega Group Inc.
- Bicycle Trade Association of Canada
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