Finance committee  Thank you very much for the opportunity to speak before the committee. My name is Todd Roberts. I'm the senior vice-president responsible for payments innovation and growth at CIBC. As well, the payments system, its regulation, and the factors that lead to innovation and succes

Finance committee  The interests of both originators and receivers of payments will need to remain balanced so as to ensure that Canadians continue to have the flexibility to use the payment methods that they prefer. Sustained investment will also be required across players in the payments ecosyste

Finance committee  We have not seen significant shifts over time in the use of credit cards versus debit cards. Prepaid cards have not been as significant in this marketplace. I think you will find this year that a range of banks will be providing prepaid cards to their clients as well. Stored-loo

Finance committee  What you will find is that, typically, people start with a debit card because they're actually not creditworthy. Over time, after they build up their creditworthiness, then they will apply for credit cards because, as you note, sir, you're right, they have access to loyalty and t

Finance committee  Yes, you can.

Finance committee  I think the starting point is ensuring that there is a common standard. If I look at today, there are federal regulations that we need to adhere to as a bank to ensure that money laundering and terrorist financing isn't occurring. If you look at other players that enter the space

Finance committee  I think it's unequivocal that the Canadian system for retail payments is far ahead of the U.S. system. I was speaking at a conference I was at in Salt Lake City literally two weeks ago, explaining that there is a range of factors accounting for why our retail payments infrastruct

Finance committee  First, the fees that were noted are actually set by the networks: MasterCard, Visa, American Express. Second, the charges incurred at the merchant are set by their relationship with the party that provides services to them. Examples in Canada include Global Payments and Moneris.

Finance committee  It's not that we're not taking any action. It is the responsibility of the networks to set rates. We do not set those rates.

Finance committee  I think that historically the standards that have been effective have been driven by a combination of our regulators, so OSFI, as well as the role that the Department of Finance has played. I look at organizations such as the CPA, and the newly established group, FinPay. I think

Finance committee  We believe that any party that actually provides a payment service to Canadians should be held to the same standards. So I think the test should not be what type of institution they are, I think the issue should be whether they are involved in payments or not. So if you are provi

Finance committee  I think there's a difference between a large value payment system and ACSS, which is the mid-range payment system. So the Bank of Canada has initiated a process to look at LVTS modernization. I think it's a very good process. It will make highly specific recommendations about the

Finance committee  Yes. I think the attributions of 1% to 2% need to be more fully tested.

Finance committee  Yes. CIBC pays Rogers a fee, which is a matter of our contract and which is why neither of us is saying what the number is. It's small. I pay that fee. So CIBC pays that fee to Rogers in order to put the credit card credential on the phone. Once it's on the phone it behaves just

Finance committee  That's correct.