A York shoeshop retailer who launched Europe's biggest online shoestores is digging in his heels on behalf of small dotcom operators.

Stuart Paver who runs shoe-shop.com from Concorde Park in Amy Johnson Way, Clifton Moor, claims that credit card discrimination by American banks against Internet start-ups is spreading to the UK.

He has lobbied Patricia Hewitt, minister for small business and e-commerce, and he is calling for the establishment of a dotcom business association to fight the threat.

He says that UK banks are beginning to ape those in the US which commonly charge web-based companies more to handle credit card transactions on the grounds that they are a greater security risk.

Mr Paver, who believes 18 years' experience in the shoe trade, with a chain of 20 shops which began with his late father's store in Piccadilly, York, allowed him successfully to escape the worst of the dotcom discrimination, but claims that the odds are heavily stacked against the small online company.

He said: "Banks are charging e-tailers in the US up to $1 per transaction more than traditional retailers for credit card use, on the pretext that Internet fraud represents a huge risk. This is hitting small start-ups when they are most vulnerable.

"Shoe-shop.com has escaped the worst effects of this policy so far because the long histories of its founders within traditional retail means we are seen as less of a risk. We have a proven pedigree because of our retailing backgrounds.

"However, 99 per cent of sales at Shoe-shop.com take place via credit card. If this figure is applied to smaller dotcoms without a history of traditional retail it means they will be penalised for their innovation. It is clear this represents a huge threat to e-business in the UK, a sector where our government and financial institutions would be encouraging innovative new business."

In the absence of a business banking ombudsman, the banks are free to abuse their position by maintaining that market forces are at work, says Mr Paver.

"One answer would be the setting up of a dotcom business association to fight for better rates for its members and the government's support would be welcome."

Meanwhile, he advises, the only answer was to gain retail experience and to demonstrate a good understanding of business fundamentals in order to get a better deal.

"If all else fails, young businesses should not be afraid to haggle in order to get the best possible deal."

A recent report by J P Morgan suggests that the four main clearing banks in Britain are making 30 per cent margins out of small firms because of the virtual monopoly they enjoy over small business banking.

The top six banks have cornered a 97 per cent share of the small business banking market.

Credit cars charges are expected to feature heavily among the findings of the Competition Commission into small business banking, due next June.