Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Government shouldnt interfere in interchange fees says CUNA
WASHINGTON (6/9/08)—The Credit Union National Association (CUNA) opposes a recently introduced Senate bill to regulate credit card interchange fees and believes the free market, not the government, should set the user fees. Sen. Richard Durbin (D-Ill.), who is majority whip, introduced a bill last week that would force payment system providers and merchants to either agree on interchange fees or argue their case before a newly created tribunal which would have the authority to set the rate. His bill, a companion to similar House legislation, would set up a three-member panel of lawyers appointed by the U.S. Department of Justice and the Federal Trade Commission. Under Durbin's Credit Card Fair Fee Act of 2008, retailers would be able to engage in collective negotiations with the providers of any electronic payment system with significant market power, defined as 20% or more of the credit and debit card market, over the fees and terms for access to that system. If the retailers and providers do not reach a voluntary agreement on fees and terms, the matter would be brought before the three-judge board. The House bill (H.R. 5546), introduced by Rep. John Conyers (D-Mich.) who is chairman of the powerful Judiciary Committee, was drafted after Conyers conducted a series of House task force meetings focused on whether credit card companies, as well as financial institutions, engage in anti-competitive practices when setting the fees they charge retailers. CUNA Vice President of Legislative Affairs Ryan Donovan Friday said CUNA strongly opposes government intervention in what should be a free-market process and has been working closely with the Electronic Payments Coalition to oppose legislative efforts in the House and Senate. Donovan said the current system of setting interchange fees is beneficial to consumers because interchange fees assist the growth of universal acceptance of cards and the innovation of super-fast authorization technology and enhanced security measures.


RSS





print
News Now LiveWire
CUNA: CUNA offices closed through Friday, News Now returns Monday http://t.co/a5xbLzQKDj
22 hours ago
Reminder: @CUNA's Madison, D.C. offices will be closed through Friday, open again on Monday. #NewsNow will publish Monday.
1 Day ago
MI dentist to match @CUDirect's $20K to @HurleyMedical as a result of #20for20 online voting http://t.co/hqmIc9LpK1 @CMNHospitals
1 Day ago
New #creditunion chartered in St. Louis - #LutheranFCU - by @TheNCUA http://t.co/faPfANGS0P. Only 3rd new FCU charter this year.
1 Day ago
Don't get hacked during the holidays-use these tips from @CUNA http://t.co/jEqxni6NhO #StoptheDataBreaches http://t.co/woIxPOIyys
1 Day ago