WASHINGTON — The National Retail Federation is celebrating the introduction of a measure which is designed to force both sides of the card interchange fight to settle their differences or face arbitration by the courts.
H.R.5546, the Credit Card Fair Fee Act would require the major card brands to negotiate with merchants to reach an interchange settlement. If an agreement can be reached, both sides would have to submit to binding arbitration by a panel of judges appointed by the Department of Justice and Federal Trade Commission.
“This legislation would use the nation's antitrust laws to rein in the greed of the credit card companies,” NRF Senior Vice President Mallory Duncan said. “With the rapidly increasing use of plastic, credit card companies and their banks are seeing a windfall that is costing U.S. consumers tens of billions of dollars each year. These are fees that most consumers don't even know they're paying because Visa, MasterCard have tried to keep them secret. The introduction of this legislation marks the beginning of the end of credit card company rip-offs.”
“Rather than allowing these fees to continue to be set in secret and imposed on a take it or leave it basis, this legislation would require negotiations and allow retailers to seek fair terms and conditions that will ultimately mean a better deal for consumers,” Duncan said. “Consumers are already angry at the way they've been treated by credit card companies, and this bill is an important step toward making credit card companies treat both merchants and their customers with respect.”
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