Thank you, Mr. Chair.
I am pleased to be here today.
Our government takes the financial protection of businesses and consumers very seriously, and that includes credit cards.
Today, I would like to talk about four areas in which our government has taken action in recent years in relation to credit cards.
First, we are lowering credit card transaction fees for small businesses. In 2023, our government reached agreements with Visa and Mastercard to lower credit card fees paid by small businesses. These agreements came into effect on October 19 this year. Thanks to these agreements, more than 90% of businesses that accept credit cards are paying lower fees and have seen their fees reduced by up to 27%. Over the next five years, these agreements will save eligible Canadian small businesses about $1 billion, and we're doing this while protecting and preserving the rewards points Canadians receive from their credit cards. For a small business, that is money that can be used in so many ways: to advertise, to buy new equipment, to pay down loans, to hire staff or just to give themselves a little extra breathing room.
Let me be clear: We negotiated these agreements to help small businesses. We have repeatedly stated that we expect all payment processors—that includes Stripe—to pass these savings on to businesses, and we are prepared to take further action to make sure that happens.
Second, we announced a revised code of conduct for the payment card industry in Canada to protect over one million businesses that engage in credit and debit card transactions with their customers.
Since October 30, 2024, the revised code has been helping businesses compare prices and offers by different payment processing services.
In addition, the code aims to reduce the time it takes to address complaints from businesses to only 20 business days. This transparency and ease are positive for merchants. All major payment card network operators in Canada have agreed to the terms of the revised code.
Third, we introduced the financial consumer protection framework, in 2022, to protect consumers by making sure they have additional and timely information to help with decision-making, including related to their credit cards. For example, banks must send electronic alerts when credit available on a credit card or line of credit falls below $100. Banks must also send timely reminders when products and services are set to renew. For products or services with 30 days or more, two reminders must be sent before the end of term. The framework ensures banks must also have policies and procedures in place to ensure that the products and services they offer to consumers, including credit cards, are appropriate to the consumers' financial needs. Additionally, banks must provide certain information in a prominent way to consumers when they apply for credit cards, such as key interest rates and fees.
Fourth, and finally, to ensure Canadians can count on always being treated fairly by their bank, I designated the ombudsman for banking services and investments as Canada's single transparent, not-for-profit external complaints body for the banking sector. This strengthened complaints body has had jurisdiction to resolve complaints at all Canadian banks starting on November 1.
For too long, banks have been able to pick and choose who is going to resolve complaints from Canadians. With an independent, transparent, not-for-profit ombudsman, Canadians will benefit from greater transparency. Our government will continue to ensure that Canadians are treated fairly by their banks. We will ensure that they have access to affordable, quality banking options.
Thank you, Mr. Chair.