CUNA and NAFCU have signed a letter with two bankingassociations urging senators to defeat an amendment aimed atreducing interchange fees that the trade groups say would decreasethe availability of credit.
|The amendment, sponsored by Senate Majority Whip Richard Durbin(D-Ill.), would allow retailers to offer discounts to consumersthat use certain types of credit cards, and there would be norestrictions on how the merchants could advertise thediscounts.
|The trade associations contend that the amendment would "permitmerchants to discriminate against payment cards issued by aparticular financial institution, including community banks andcredit unions."
|They also complain that the additional reporting requirementswould be burdensome and could result in the publication of pricinginformation that would be used by potential competitors.
|These results, they argue, could drive smaller banks and creditunions out of the credit card business.
|The amendment is likely to be offered as part of a bill tooverhaul credit card rules that the Senate is considering thisweek. The House passed a similar measure last month.
|In addition to CUNA and NAFCU, the letter was signed by theAmerican Bankers Association and the Independent Community Bankersof America.
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