Consumers pay price for government inaction

OTTAWA – New Democrat consumer protection critic Glenn Thibeault is disappointed that consumers will have to pay for the shortcomings of their government once again.

As Finance Minister Jim Flaherty’s 60-day consultation period on his government's voluntary credit card and debit card code of conduct drew to a close yesterday, several business groups lobbied for businesses to be allowed to charge consumers an extra fee to cover rising transaction fees.

“With no concrete regulations on rising merchant fees, small businesses are left with no choice but to go into survival mode,” said Thibeault. “With an economy still in recovery, small businesses cannot afford to have their already reduced margins eaten up by higher merchant fees.”

While the code unveiled last December by Minister Flaherty ensures merchants are fully aware of the costs associated with accepting credit and debit card payments, it does little to regulate rising merchant fees. As a result, many retail and small business partners are lobbying for the ability to pass surcharges on to consumers who use certain payment methods.

“Stronger regulations would have averted the need to add a surcharge,” said Thibeault.

Business groups claim the surcharge would help consumers better understand the relationship between different methods of payment and merchant costs.

“At the end of the day, we are all consumers and we shouldn't be nickel-and-dimed to death,” added Thibeault.