I am writing to you today to determine what measures your department is taking regarding concerns that some credit card companies are reneging on their “zero-liability” policy for fraudulent online credit card transactions.
Under the “zero-liability” policy, if a consumer’s credit card is lost or stolen, or if someone uses an individual’s credit card number to make unauthorized transactions, that individual is meant to be reimbursed.
That’s why it is very alarming that many consumers are finding that, in cases where they provide their credit card information via online e-commerce, financial institutions are now routinely refusing to fulfill the zero liability policy when the card is compromised.
Instilling consumer confidence in the online marketplace to assure Canadians about the efficacy of the online world and encourage widespread adoption of e-commerce activities in Canada is vital.
However, without adequate protections in place to ensure consumers are not left facing financial repercussions for the unintended consequences of e-commerce transactions, widespread adoption will be stifled.
Given the growing importance of this sector of the economy, this is not something we can take lightly.
I therefore call on you in your role of Minister of Finance to take immediate action to reinforce zero liability provisions.
MP for Sudbury