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The Credit Union National Association is urging lawmakers to reject the Gas Pump Fair Payment Act, a bill Rep. Stephen F. Lynch, D-Mass., introduced on July 24 that would cap interchange rates on gasoline purchases at the pump at no more than 1% of the cost of each gallon of fuel. The House Financial Services Committee is reviewing the bill and has yet to set a date for debate. Merchant acquirers pay card issuers interchange and pass the expense on to their retailer clients as part of the discount rate. Interchange can be as high as 2% of the sale on rewards card transactions. Daniel A. Mica, president and CEO of the 8,200-member association, warned in a statement released last week that passage of the bill would "upset a delicate balance in the electronic payment system." Mica said that because interchange helps credit unions offset the cost of offering credit and debit cards to consumers, the bill ultimately would result in debit and credit payment options becoming "less available and more expensive for consumers." Separately, the House Judiciary Committee last month approved the Credit Card Fair Fee Act, which would compel card networks to negotiate interchange rates with retailers (CardLine, 7/16). That bill has not yet moved to the House floor for a vote.
