CIPMA Applauds Competition Bureau’s Challenge Of Visa And Mastercard
December 15, 2010
The Canadian Independent Petroleum Marketing Association (CIPMA) applauds the significant announcement this morning by Canada’s Competition Bureau. http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03325.html
The Bureau has filed an application with the Competition Tribunal to strike down restrictive and anti-competitive rules imposed on merchants who accept Visa and MasterCard credit cards.
The Bureau argues that anti-competitive restraints on merchants increase consumer prices. Canada has some of the highest merchant acceptance fees in the world.
CIPMA has taken an active role with the Competition Bureau in bringing evidence of anti-competitive behavior forward. CIPMA has been working with other retail trade associations to bring the issue of increasing and unfair credit card merchant fees to the attention of Ottawa policy makers.
Independent fuel marketers and independently operated gasoline stations are particularly vulnerable to increasing credit card fees due to the high variability in fuel prices.
Independent fuel marketers’ profits drop when gas prices rise- because of higher credit card costs.
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