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The interchange legislation U.S. Rep. John Conyers, D-Mich., introduced yesterday that would exempt merchants from antitrust laws to negotiate interchange rates with card issuers "would result in less credit availability, along with higher prices and reduced benefits when Americans choose to use their credit or debit cards," MasterCard Worldwide said in a statement today. The bill would have the opposite effect of what antitrust laws are designed to protect, which is to promote competition and help consumers, the card company said. The U.S. Department of Justice and the House Judiciary Committee both expressed concern over the bill's antitrust exemption, MasterCard noted. The card brand contends both merchants and consumers benefit from using and accepting electronic payments, and each party should pay for the cost of that system through interchange. With this bill, the cost of cards would shift solely to consumers, MasterCard contends. The company also noted that "any serious discussion of these issues should wait for the results of the Government Accountability Office study ordered by Congress as part of the Credit CARD Act."
