A drive to schedule a House floor vote over legislation requiring credit card companies to negotiate with stores over fees they charge has been derailed amid a jurisdictional spat between committees.
Retailers had been pushing for a floor vote on the bill, which would require VISA and MasterCard to negotiate with them on lowering the average 1.75 percent interchange fee the card companies charge per transaction. The House Judiciary Committee approved it 19-16 on July 16.
House Judiciary Chairman
John Conyers
crafted the bill so it would provide antitrust immunity to negotiations, which currently cannot take place because under anti-monopoly laws, merchants are unable to join together to bargain as one entity. That language allowed the Conyers bill to circumvent the House Financial Services Committee, where the banks hold great sway.
House Financial Services Chairman
Barney Frank
wrote to
Speaker Pelosi
on Friday asking that the Conyers bill be referred to his panel because Frank claimed that some of the provisions strayed beyond antitrust issues.
He said the bill would direct how banks would direct cardholder savings from changes in interchange rates.
In his letter, Frank wrote that the bill would allow small banks and credit unions to opt out of negotiations under the bill, but that his panel traditionally has made distinctions in powers and authorities between credit unions and banks.
"As this bill addresses a number of complex issues regarding banks, banking, extension of credit, operation of credit networks and the pricing of credit, the committee with subject matter expertise over these issues should have the opportunity to consider the bill," Frank wrote.
Financial services lobbyists were pleased with the letter, noting that the issue will be referred to the House parliamentarian, making it highly unlikely the measure could reach the floor before lawmakers leave Sept. 26 for the fall elections.
"I think this is pretty much an indication that this House bill is not going to go anywhere this year," said Ryan Donovan, vice president of legislative affairs for the Credit Union National Association.
One retail official expressed disappointment over the letter, noting that the objection came near the end of the legislative year, even though the bill was unveiled six months ago.
Lobbying over the bill has been fierce between the two sides as the annual interchange fees amount to $48 billion. Both groups have ramped up their lobbyist hiring and established coalitions to counter each other's claims.
