WASHINGTON — Capping interchange fees would make it harder for credit unions to offer debit and credit cards and force them to increase the cost for their services, Chartway Federal Credit Union Vice President of Operations John Blum told a House panel last Thursday.
"The loss in revenue that would occur if interchange fees were capped must be made up somewhere. Ultimately those costs and those burdens will fall on consumers," he said during testimony before the House Judiciary Committee's Anti-Trust Task Force.
The panel is considering a bill, sponsored by Judiciary Committee Chairman John Conyers (D-Mich.), which would require major card brands to negotiate with merchants to reach an interchange settlement. If they can't reach an agreement, they'd have to submit to binding arbitration by a three-judge panel appointed by the Justice Department and the Federal Trade Commission.
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