Marina Strauss reports on how big retailers in Canada are relying heavily on bank cards for their profits.

At Toronto-based Hudson's Bay Co., which runs the Bay and Zellers, most operating profit -- 94 per cent of it -- came from card earnings last year, DBRS figures indicate. That's almost double the 44 per cent of HBC's total operating profit from card earnings in the previous year, DBRS said. Meanwhile, Sears Canada Inc. saw 57.5 per cent of its operating profit come from credit card earnings in 2001, up from 19.9 per cent a year earlier, DBRS said. At Toronto-based Canadian Tire Corp. Ltd., 26.4 per cent of its operating profit came from credit card earnings last year, up from 17.6 per cent in 2000.

Gay McNamara reports on the situation in Australia as merchants beginning January 1 are free to surcharge credit card transactions.

The Reserve Bank estimates the service fees on credit cards cost merchants about $1.5 billion a year, which is passed to consumers through higher prices. Small retailers are the hardest hit, paying an average 3 per cent to 3.5 per cent and some paying more than 4 per cent. But they were restricted from passing the cost to customers under credit card scheme rules.