Thank you, Mr. Chair.
Mr. Lampron, every time someone pays by credit card, the merchant pays fees, which vary depending on the type of card used—Visa, Mastercard or American Express—and the rewards program associated with the card, which may be generous or less so. Typically, transactions carried out with a card that has a generous rewards program cost retailers more, and yet they charge all their customers the same price for the same product. That means that lower-income people, poorer people, or people with cards that have less generous programs, end up financing the free travel, flights and hotel rooms paid for with points that belong to people with more money. We do not oppose rewards programs, but it looks like a regressive practice to us.
When the Mastercard people came here, we suggested that they display the credit card fee structure on the bill, just as the GST, the QST and the other taxes are displayed. It would show people what they are paying for air miles or other similar programs, on top of taxes. It would also enable merchants to adjust the fees and charge consumers directly for the fees associated with their generous programs that pay for their travel. That was one proposal.
The Mastercard people told us that this arrangement, which would essentially be a transparency arrangement, is already allowed. Merchants can already do it. If a merchant wants to add an amount to the bill for someone who has the most generous rewards program in the world, they can already do it.
How was the answer given by the Mastercard people received by you and your members? Are there people who are doing it? Does it work? Do the contracts allow your members to do it? If not, are they simply trying to blow smoke up our skirts again by saying that if the system works to the detriment of the people who have less money, it is ultimately the fault of the retailers, not the credit card issuers?