WASHINGTON - CUNA last week called on House members to vote against a proposal aimed at controlling credit and debit card interchange fees, saying the interchange fees should be left to the market.
The bill, said CUNA CEO Dan Mica in a letter to lawmakers, “would impose unnecessary regulation over the card transaction interchange fee process by establishing a costly governmental tribunal that would be authorized to impose its decisions on a system that is more appropriately governed by the market.”
CUNA’s position echoes that offered by NAFCU in recent weeks. The bill was introduced by lawmakers who say the fees, which amount to $35 bill a year now, are set by the two major card companies, Visa Inc. and MasterCard, with no input from competitors because the two companies 80% of the market.
“Supporters of this legislation assert that consumers would benefit from government interference, but there is no clear indication that this objective will be met,” said the Mica letter. “Government-imposed price controls on interchange fees are more likely to increase credit and debit cards costs that consumers bear. The uncertainty surrounding this legislation makes it unlikely that consumers will see any benefit.
