WASHINGTON — CUNA and NAFCU contend that a measure introduced last week in the Senate to cap interchange fees would hurt credit unions and make credit less available to consumers.
"Simply put, this proposal seeks to apply artificial, Draconian measures to a system that does not require them," NAFCU President Fred Becker said in a statement."
Last week, Sen. Richard Durbin (D-Il.) introduced a bill to 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 Federal Trade Commission.
Recommended For You
Durbin's measure (S. 3086) has no co-sponsors at this time and has been referred to the Senate Judiciary Committee. A companion bill (HR 5546) was introduced by House Judiciary Committee Chairman John Conyers (D-Mich.) and a hearing was held on it last month. It has 37 co-sponsors.
CUNA President and CEO Dan Mica wrote a letter to all senators saying that the measure was unnecessary and ill advised.
"Government-imposed price controls on interchange fees are more likely to increase credit and debit card costs that consumers bear, and make convenient credit less available," he wrote.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
