A5

By HEATHER MCLAUGHLIN
mclaughlin.heather@dailygleaner.com

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The CEO of Fredericton's Chamber of Commerce is adding his voice to leaders of other retail and business groups in condemning Visa and MasterCard for launching merchant fee hikes.

"There has been new rates added to credit card transactions, and that is creating some hardship for retailers," Anthony Knight said.

The fees were announced without consultation and no explanation of their need or purpose, he said.

"There's no choice in the matter," he said.

Credit card companies charge what's called an interchange fee to retailers for every transaction a merchant processes.

Every time a credit card is used to buy an item at a store, pay a bill at a restaurant or pay for a service such as your water bill at city hall, the vendor is charged a fee. Fees were hiked in June and are being raised again in October.

Credit card companies introduced enhanced charge cards to customers, but the new cards come with a surcharge on top of the normal interchange fee, so merchants will end up paying even more in transaction fees for those types of cards.

The Retail Council of Canada, the Canadian Federation of Independent Business and a host of other groups representing the retail sector are calling for government intervention to regulate the credit card industry.

"If there's anything that can be learned from the situation in the United States, it's that there needs to be oversight over some of the financial institutions and credit card companies. There shouldn't be unfair burdens on small-business owners," Knight said.

Rising costs of fuel and transportation have already hit retailers, Knight said, and it presents a serious challenge for business to remain competitive.

"There needs to be recourse and there isn't right now," Knight said.

The Canadian Federation of Independent Business has launched a website and campaign called StopStickingItToUs.com to lobby for controls on the credit card industry.