http://www.vancouversun.com/business/Block+credit+card+companies+from+debit+business+CFIB/1453093/story.html

Block credit-card companies from debit business: CFIB

Summary
This articles talks about how independent businesses want the government to block banks from sending out credit cards such as Visa and Master Cards with new fees and features. With all the new fees and features for these premium credit cards, businesses will have to pay for them. Catherine Swift, president of the Canadian Federation of Independent believes banks are culprits because these higher fees hurt the individual businesses more than anyone else. Even though Swift asked to block these credit cards in Ottawa, both Visa and Master Card plans to enter the market in the fall to compete again Interac. As the fees increase for the credit cards, businesses will increase and good will increase as well to cover the cost.

Connection:
In this chapter we talk about the demand for money. People find it much simpler and easier to carry a plastic card around rather than money. It is also easier to use a plastic card compare to cash because you won’t feel like you’re actually spending that much money. Where if you’re using cash you will always know and feel how much money you’re actually spending. With all of these new fees and features it will increase people to use their credit card more. Which means individual businesses will have to pay for the services it requires. But with the economic conditions right now it will be hard for businesses to increase prices.

Personal Reflections
I personally think banks should continue having these new fees and features with Visa and Master Card. This will increase people to spend more money on goods; this is a way to get out of the current economic situation. Although goods may be raised, people wouldn’t notice that much of a price difference because their using a card rather than real cash. In the end the individual businesses are able to cover the expense that is if consumers purchase goods.