WASHINGTON -- The U.S. Department of Justice has sent a letterto a U.S. Representative signaling its disapproval of a proposal togive the power to set card interchange to a panel of judges.
Writing Rep. Lamar Smith (R-TX) about HR 5546, the so-calledCredit Card Fair Fee Act of 1998, Deputy Assistant Attorney GeneralKieth Nelson expressed doubt that such a bill would do consumersany good.
"First, this bill may actually harm consumers, not benefitthem," Nelson wrote. The credit and debit card markets are complex,so-called "two-sided" markets in that each network needs to attractboth cardholders and merchants. Pricing on one side of the marketimpacts the pricing on the other side.
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