MasterCard and Visa Warn on Payments Regulation in Canada

Visa, MasterCard warn on payments regulation

MasterCard and Visa last week presented themselves as champions of the consumer who would be hurt by "price controls" if the federal government acts on a plea by merchant groups to regulate Canada's $500-billion electronic payments system.

But MPs from all political parties weren't buying their argument.

Kevin Stanton, MasterCard Canada president, painted a dismal picture for consumers if government acts on the pitch from the coalition representing 250,000 businesses in retail, grocery, restaurant, hotel and independent sectors. He cited Australia's 2003 decision: "Prices didn't come down, but rewards and benefits went down. The interest rates went up, fees went up and there was reduced competition."

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