All Top Banking

Don't Regulate Credit Card Rates, Visa Chief Says

Posted by John B. Frank Tuesday, March 31, 2009



Government regulation would hurt consumers by limiting competition, Canadian chief warns
Mar 31, 2009 Dana Flavelle - Business reporter

The head of Visa Canada chose a Toronto business audience to test the sales pitch he plans to deliver to Ottawa: Don't regulate the debit and credit card industry.

But the message fell, at least partly, on deaf ears.

While acknowledging that growing complaints about the industry have led to a Competition Bureau investigation and Senate hearings calling for caps on fees and rates, Tim Wilson said more government involvement would stifle innovation and choice.

As an example, he cited Visa's plans to enter Canada's debit market in competition with the bank-owned Interac system.

Although Visa debit cards would cost more to process than Interac cards, Wilson said they would also offer increased security, lower payment risk and more opportunities to shop online and outside Canada.

"There are no regulations that prohibit us from entering the market right now," Wilson said in an interview after his speech to the Economic Club of Toronto. "The concern is there will be regulations in future that will prohibit us from entering the market or limit the way in which we enter the market. And we're suggesting that would limit competition and therefore innovation and the value we can deliver to consumers."

The system could be in place as early as this fall if Canada's banks and other card issuers agree to it, he said.

He described the higher cost to business of handling Visa debit cards as "moderate."

Continue Reading at thestar.com


Reblog this post [with Zemanta]

0 comments

Post a Comment

Powered by Blogger.

Blog Archive

Search This Blog

Our Manufacturing Facility

Learn More About Us

Find out how our patented technology can empower your financial institution.

Our secure two-factor online banking authentication eliminates dangerous passwords and usernames and replicates the same trusted process used to access cash at ATM's. (Insert Bank Issued Card, Enter Bank Issued PIN)

There is an R.O.I. as FI's also earn recurring revenue from each transaction conducted using our PCI 2.0 Certified PIN Entry Device. Our technology also provides a unique real-time P2P "Instant-Transfer" which allows your online banking customer to transfer cash from ANY of their bankcards to ANY other bankcard...with the Swipe of a card.

Help your bank eliminate phishing and your customers avoid identity theft by providing them with the ability to stop typing and start swiping. There is no safer way to conduct financial transactions online than by 3DES DUKPT encrypting the cardholder details, which we do at the mag-head "inside the box/outside the browser."

Total Pageviews

SLIM for PC or SmartPhone

SLIM for PC or SmartPhone
Click to Inquire

Chip and PIN eCommerce and Mobile

Chip and PIN eCommerce and Mobile
Click to Inquire

Kapersky Calls for Mass Adoption of Card Readers

Kapersky Calls for Mass Adoption of Card Readers

Translate This Blog

BobCaps

Search ePayment News (example: NFC)

About Me

My photo
Named one of the best Payment Industry News Blogs 4 Years Running

Feedjit

My Zimbio