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Flaherty wants code of conduct for credit, debit cards
CTV.ca News Staff
Date: Thursday Nov. 19, 2009 8:41 PM ET
Finance Minister Jim Flaherty is proposing a voluntary code of conduct for credit- and debit-card companies that could mean savings for consumers and small businesses.
He says the code will "level the playing field" and make sure stores and consumers clearly understand the costs and benefits of credit and debit cards.
For consumers, it means gold, platinum cards will only be issued when people specifically apply for them.
For small businesses, the code means credit card companies would have a minimum of 90 days notice to tell stores about any changes to fees they have to pay to be able to accept credit or debit cards.
If stores don't like the changes, they'd be allowed to cancel their contracts and not pay a penalty.
They also won't be required to accept both debit and credit cards from one network unless they want to.
Flaherty is giving businesses two months to give their input on the proposal and says it could be finalized by early next year.
Small businesses are already cheering the move.
"These developments will create a better future for merchants and help ensure a fair and transparent credit and debit market instead of just letting large industry players call all the shots," Canadian Federation of Independent Business president Catherine Swift said in a news release Thursday.
Major credit card company MasterCard said in a statement that it takes will review the measures.
"MasterCard believes that in formulating the proposed code the minister has undertaken a comprehensive and diligent review of a complex matter involving disparate claims."
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Say you apply for a credit card, and you get it, its not anyones fault but your own if you max it out and either cant afford to pay it off, or you take a very long time and you end up paying for that card 3 times over. As consumers, we have to have enough dicapline to know when we can or cant afford to buy something, and also have to have the knowledge that just because a lending insitution gives you the money, dosent always mean you can afford to buy something!
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