INDUSTRY NEWS: Retail grocers applaud government for new credit/debit rules

Finance Minister, Jim Flaherty has finalized a Code of Conduct by which credit card companies must abide. Over the last two years, retailers across the country have been hammered by unrelenting fee increases, a lack of transparency, and agreements forced on retailers that abused the dominant position of credit card companies in Canada. In particular, many small and medium size retailers simply do not have the clout to deal with credit card giants and payment processors.

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Retail grocers applaud government for new credit/debit rules

TORONTO, April 16 /CNW/ - The Canadian Federation of Independent Grocers (CFIG) welcomes the announcement today by Finance Minister, Jim Flaherty, finalizing a Code of Conduct by which credit card companies must abide.

"The Code of Conduct is a very positive step and we are very pleased to note that many of the concerns CFIG has raised on behalf of independent retail grocers, such as negative option billing practices, have been heard and responded to, by the government." said John F.T. Scott, President and CEO of CFIG. Together with the decision announced by the Competition Bureau in February to ensure Interac remains a not-for-profit entity, this ensures some balance to the electronic payment system in Canada.

CFIG also welcomed the decision by the Minister to bring in legislation that will give the government the ability to regulate the market if the voluntary Code of Conduct does not work. Scott added, "Together with a regulatory framework, the Code and the Interac decision provides retailers with choice and ensures that our members can continue to compete as important members of the food industry and the communities they serve across the country."

Over the last two years, retailers across the country have been hammered by unrelenting fee increases, a lack of transparency, and agreements forced on retailers that abused the dominant position of credit card companies in Canada. In particular, many small and medium size retailers simply do not have the clout to deal with credit card giants and payment processors.



Quotes:


"The Code of Conduct is a very positive step and we are very pleased to note that many of the concerns CFIG has raised on behalf of independent retail grocers, such as negative option billing practices, have been heard and responded to, by the government."

"Together with a regulatory framework, the Code and the Interac decision provides retailers with choice and ensures that our members can continue to compete as important members of the food industry and the communities they serve across the country."

SOURCE: CNW Newswire Press Release