The provisions giving the Federal Reserve the right to set interchange fees came a step closer to reality last night when Senate members of the House-Senate conference committee on financial overhaul accepted an offer made by House conferees.
The interchange language, which is strongly opposed by CUNA and NAFCU, contains most of the original amendment that was passed by the Senate when it passed the financial overhaul bill last month. Under the House's offer, The Federal Reserve would still have the power to regulate interchange fees though credit unions and banks with assets of $10 billion or less would be exempt and retailers would be expressly forbidden from discriminating among card types.
NAFCU President/CEO Fred Becker said the presence of the interchange language means that his association will oppose the bill.
CUNA President/CEO Dan Mica said Monday that because of the interchange provisions that his association will "almost certainly," oppose the bill but CUNA hasn't issued any additional statement after last night's vote.
Conferees are expected to complete final action on the bill by Thursday and both chambers are scheduled to vote on it next week.