WASHINGTON — The next round in the dispute between retailers and credit card issuers over interchange fees is scheduled to take place Wednesday, when the House Judiciary Committee marks up a measure that would mandate an interchange settlement between the two groups.
H.R. 5546, the Credit Card Fair Fee Act, would require the negotiation of an agreement on interchange fees between retailers and credit card companies. If they cannot reach an agreement, both sides would have to submit to binding arbitration by a panel of judges appointed by the Department of Justice and the Federal Trade Commission.
CUNA and NAFCU strongly oppose the measure because they contend that additional fees could cause credit unions to stop issuing credit cards, and thus limit consumers' options.
Retailers contend that the existing structure hurts consumers and the fee structure violates existing anti trust laws and threatens fair competition.
The bill, which is sponsored by House Judiciary Committee Chairman John Conyers (D-Mich.), has 39 co-sponsors. Even if it passes the committee and full House, its fate in the Senate is uncertain, given the short legislative calendar remaining this year. Also, the Bush administration has expressed concern about the bill.
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