http://www.theglobeandmail.com/repor...ticle13333094/
A ruling expected this week on a complaint against Visa and MasterCard could significantly change how consumers use credit cards in Canada.
The federal Competition Tribunal is set to issue a decision Tuesday on whether rules imposed on merchants by the credit card giants are too restrictive.
Striking down the rules could allow merchants to either reject certain cards that offer incentive points, or charge consumers more for using them.
Under the current rules, merchants are required to accept all Visa and MasterCard offerings, but are prevented from charging an additional fee to those who pay with so-called premium cards, which come with higher costs.
Canada’s Commissioner of Competition filed a formal complaint with the tribunal in May 2012, accusing Visa and MasterCard of engaging in anti-competitive behaviour.
Consumers have been forced to pay an estimated $5-billion worth of hidden fees each year as a result, the complaint says.
Does a ruling "in favour" of consumers mean the end of lucrative cash back and rewards credit cards?
Quote:
A ruling expected this week on a complaint against Visa and MasterCard could significantly change how consumers use credit cards in Canada.
The federal Competition Tribunal is set to issue a decision Tuesday on whether rules imposed on merchants by the credit card giants are too restrictive.
Striking down the rules could allow merchants to either reject certain cards that offer incentive points, or charge consumers more for using them.
Under the current rules, merchants are required to accept all Visa and MasterCard offerings, but are prevented from charging an additional fee to those who pay with so-called premium cards, which come with higher costs.
Canada’s Commissioner of Competition filed a formal complaint with the tribunal in May 2012, accusing Visa and MasterCard of engaging in anti-competitive behaviour.
Consumers have been forced to pay an estimated $5-billion worth of hidden fees each year as a result, the complaint says.