October 07, 2009

• Americans Pay The Highest Interchange Fees Worldwide, Pt.4
    Your help is needed

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  Canada's average credit card interchange fee is 1.5% which isn't far behind the average 2% that Americans pay. Like the United States, Canada has only recently made the high cost of transaction fees a focus. Most likely, their action has only been initiated by the outrage of all North Americans. Nevertheless, earlier this year in March, the Competition Bureau of Canada began an investigation into possible violations by the major credit card networks, Visa and MasterCard, of Canada's Competition Act. The Canadian Senate's Committee on Banking, Trade and Commerce concluded that there was an imbalance of power in the credit card payment system which contributed to higher prices for consumers.

  In conclusion, the committee stated that the card payment system needed "improvement and clarity." Despite the recommendations of the committee, Canadian lawmakers have not taken any measures to rectify the abusive practices of the credit card networks. In fact, some Canadian lawmakers believe it not to be a priority and say the government should refrain from taking any action at this time. Many Americans feel the U.S. Government has taken the same stand. However, there are some U.S. lawmakers looking out for the best interest of Americans. A new piece of legislation is circulating in the U.S. House and Senate that is aimed at reining in these enormously high payment transaction fees. The Credit Card Fair Fee Act calls for an end to the unfair price fixing.

  While the battle is fought in Washington, proponents of the bill need your help. If you want to make a difference in putting a stop to high credit card transaction fees, there are several things you can do. You can start by contacting your representatives and telling them to support the fight against high interchange fees and unfair practices in the system. Put pressure on the local media by writing them about how unfair and high fees are affecting you and your family. Spread the word to all your friends and family asking them to join you in the fight against these enormous fees. Mostly likely, most of them are not aware of what it's costing them regardless of the method of payment used. Ask them to read this series that they too can learn the truth about interchange fees.
  
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