In 2008, there was bipartisan opposition to controversial interchange legislation in the U.S. House of Representatives. Both Democrats and Republicans raised serious concerns about the harm it would cause consumers and small businesses.

“[It] was an unusually chaotic panel vote; supporters and opponents of the bill did not fall along party or other easily recognizable lines.

The vote frequently broke down, with members unsure of exactly what was transpiring. Though House Judiciary Chairman John Conyers co-authored the bill, Democrats took to fighting one another, and Republicans were also divided.

The fractious debate left members staunchly divided over several aspects of the bill and with no clear ideas on how best to modify it.”

American Banker
(“Interchange Measure Clears Chaotic Committee Vote” by Stacy Kaper, July 17, 2008)

“Artur Davis of Alabama, one of eight Democrats to vote against the plan, urged further study to determine the impact on consumers.

Davis and Republican James Sensenbrenner of Wisconsin agreed the plan could hurt consumers and Sensenbrenner said Congress should avoid taking sides in the matter.”

Bloomberg
(“House Committee Votes to Contain Credit-Card Fees” by James Rowley, July 16, 2008)

“But Josh Floum, Visa's general counsel, said in a prepared statement that the bill "would mandate unnecessary regulatory intervention into a fiercely competitive industry that is benefiting consumers, merchants and financial institutions."

Edward L. Yingling, chief executive of the American Bankers Association, agreed and said the bill "is simply an effort by the merchant community to have government step in to reduce their cost of doing business."

Associated Press
(“Credit card fee bill passes House panel”, July 16, 2008)

“Keith B. Nelson, principal assistant deputy attorney general at DoJ, wrote that the department has historically opposed sector-specific antitrust exemptions and believes that they are justified only in rare cases…

He also said the legislation could harm consumers not help them.”

The Hill
(“House panel favors retailers in vote to cut credit card fees” by Jessica Holzer¸ July 16, 2008)

“Yesterday, five House Democrats sent Conyers a letter suggesting that the bill hadn’t addressed whether consumers are best served by the status quo.

In a statement today, Conyers said he would respond to “many of the good-faith concerns expressed by the members of this committee on both sides of the aisle.”

Digital Transactions
(“House Committee Passes Interchange Bill, But Scraps Panel of Judges, “ July 16, 2008