WASHINGTON -- An executive with the National Retail Federation has argued that the question of credit card interchange is an antitrust matter that belongs with the House Judiciary Committee and not a matter of income for financial institutions.

Recognizing the matter as an issue of income for financial institutions would leave it the responsibility of the House Financial Services Committee. A new bill which would mandate negotiations on card interchange has been introduced by Congressman John Conyers, (D-Mich.), Chairman of the House Judiciary Committee.

"What we have here is a failure of the market," contended Duncan Mallory, senior vice president with the NRF. "The credit card companies cannot argue for an uncompetitive system simply on the grounds that they need the money."

Interchange income provides a significant non-interest income stream for many financial institutions, including credit unions.

Current Democratic co-sponsors of the bill include William Delahunt (Mass.), Zoe Lofgren (Calif.), Anthony Weiner (N.Y.) and Peter Welch (Vt.). Republican co-sponsors are John Boozman (Ariz.) Chris Cannon (Utah), Louie Gohmert (Texas), Ralph Hall (Texas), John Peterson (Pa.), Todd Platts (Pa.), Bill Shuster (Pa.), John Sullivan (Okla.) and Joe Wilson (S.C.).