Any change to the rules regarding interchange fees would "provide an advantage to large financial institutions at the expense of credit unions and other small financial services providers," Chartway Federal Credit Union Vice President of Operations John Blum told the House Judiciary Committee last Wednesday.
He noted that because smaller institutions generally only break even on their credit card portfolios, any reduction in interchange fees "would cause a loss," he said in response to a question from Rep. Lamar Smith (R-Texas), the panel's top Republican.
The hearing was held to discuss a bill introduced by House Judiciary Committee Chairman John Conyers (D-Mich.) to allow retailers to join together to negotiate with Visa and MasterCard on interchange rates. To facilitate that, the bill would give the retailers a limited exemption to antitrust laws.
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