Finance committee  It's my pleasure to comment on that. In fact, the government was not silent on the price of goods in Canada. We remember a moment when the minister took a book and compared the price between--

Finance committee  So was our organization, indeed. I think it's important to note, first of all, that the retail market is a competitive market. A consumer can choose to shop in thousands of stores, eat in thousands of establishments. That's the number one comparison. With Visa and MasterCard, merchants don't have that opportunity.

Industry committee  Thank you, Mr. Chairman. I simply wanted to add that it is important to note that, even if we take the Australian system as an example, a study should be conducted in Canada to ensure that the system improves and adjusts to our Canadian environment. One of the suggestions that were made, even by Australian retailers, is that it should be ensured that all credit cards are represented in the system.

Industry committee  Do you really want me to repeat the answer we were given? In fact, we weren't given an answer. At the Canadian association, we hold meetings three times a year to which we invite representatives of the banks, credit card companies and acquirers. At the last meeting in September, the MasterCard people decided not to attend.

Finance committee  Thank you, Mr. Chairman. I simply wanted to add that it is important to note that, even if we take the Australian system as an example, a study should be conducted in Canada to ensure that the system improves and adjusts to our Canadian environment. One of the suggestions that were made, even by Australian retailers, is that it should be ensured that all credit cards are represented in the system.

Finance committee  Do you really want me to repeat the answer we were given? In fact, we weren't given an answer. At the Canadian association, we hold meetings three times a year to which we invite representatives of the banks, credit card companies and acquirers. At the last meeting in September, the MasterCard people decided not to attend.

Industry committee  Let me add to this. This in fact that would be an appropriate question to ask Visa and MasterCard. We certainly hope the committee will not accept the answer they usually give, which is that they don't share that kind of market information. Everyone knows the acquirers do. The point I'm making is that a year and a half ago the premium card market represented 2% of the entire credit card market in Canada.

Finance committee  Let me add to this. This in fact that would be an appropriate question to ask Visa and MasterCard. We certainly hope the committee will not accept the answer they usually give, which is that they don't share that kind of market information. Everyone knows the acquirers do. The point I'm making is that a year and a half ago the premium card market represented 2% of the entire credit card market in Canada.

Industry committee  If allowed to operate in Canada, these companies should operate under Canadian rules, such as those that exist for Interac through the Canadian Payments Association. Once again, the fee should be related to actual processing cost, plus a reasonable return on investment. There should be no room whatsoever for an ad valorem percentage charge.

Finance committee  If allowed to operate in Canada, these companies should operate under Canadian rules, such as those that exist for Interac through the Canadian Payments Association. Once again, the fee should be related to actual processing cost, plus a reasonable return on investment. There should be no room whatsoever for an ad valorem percentage charge.

Industry committee  Economics 101 tells us that competition leads to price reduction, but this isn't the case in the credit card market. The credit card companies have no direct relationship with either consumers or merchants. Instead, they compete only for the business of financial institutions, which they do by offering high returns to issuers using other people's money.

Finance committee  Economics 101 tells us that competition leads to price reduction, but this isn't the case in the credit card market. The credit card companies have no direct relationship with either consumers or merchants. Instead, they compete only for the business of financial institutions, which they do by offering high returns to issuers using other people's money.

Industry committee  Thank you. First, on behalf of the witnesses here today, we want to thank the joint committee for holding these hearings and for tackling this thorny issue. The importance of these hearings cannot be overstated. They provide the opportunity to shine a light on the seemingly never-ending proliferation of higher fees and new charges from the credit card companies.

Finance committee  Thank you. First, on behalf of the witnesses here today, we want to thank the joint committee for holding these hearings and for tackling this thorny issue. The importance of these hearings cannot be overstated. They provide the opportunity to shine a light on the seemingly never-ending proliferation of higher fees and new charges from the credit card companies.

Industry committee  Not the tax as much as an incentive, I think, would be a key area for us.