Merchants would be allowed to negotiate interchange with card issuers under the provisions of a bill introduced yesterday by House Judiciary Committee Chairman John Conyers (D-Mich.) and Rep. Bill Shuster (R-Pa.).
The measure, which is similar to a bill passed by Conyers' committee last year but never considered by the full House, exempts credit unions regulated by NCUA and others with under $1 billion in assets.
Its sponsors said it would level the playing field.
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"It is not an attempt at regulating the industry and does not mandate any particular outcome. This bill simply enhances competition by allowing merchants to negotiate with the dominant banks for the terms and rates of the fees," Conyers said in a statement.
CUNA and NAFCU oppose the measure and say it is a solution in search of a problem and would hurt credit unions because a reduction in fee income would decrease the incentive to issue credit cards and hurt credit unions' bottom line at a time when many are already hurting.
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