MasterCard, Visa under fire for ‘reverse Robin Hood’ effect
Credit card companies impose hefty costs on merchants, competition hearing told
Via Vancouver Sun May 9, 2012
OTTAWA — A “reverse Robin Hood” effect is taking place in Canada by allowing credit card companies to impose onerous conditions on merchants for the privilege of accepting their plastic, a Competition Tribunal hearing was told Tuesday.
It was the opening day of hearings in Ottawa in which the Competition Bureau is challenging the rights of credit card companies such as Visa and MasterCard to force retailers to accept all their card types or none, prevent them from applying a surcharge to recover the credit card fees they pay and, in the case of MasterCard, ban them from doing anything that would encourage customers to pay with something other than a credit card.