Department of Justice, Federal Trade Commission, Pentagon Federal Credit Union, National Black Chamber of Commerce and Southern Christian Leadership Conference Voice Concern over Proposed Interchange Regulation Nordstrom, Inc., a Major Merchant, Joins Opposition to H.R. 5546

PURCHASE, N.Y., July 15, 2008 /PRNewswire via COMTEX News Network/ -- As the House Judiciary Committee
meets tomorrow to consider a mark up of H.R. 5546, the "Credit Card Fair Fee
Act of 2008," MasterCard urges it to consider the many credible organizations
and regulatory bodies that have voiced significant concerns about this
legislation.

In addition to criticism from the Department of Justice and the Federal
Trade Commission, the Pentagon Federal Credit Union, Black Chamber of Commerce
and Southern Christian Leadership Conference have publicly opposed this
legislation because they believe it will harm their constituents.

Nordstrom, Inc., a major retailer, also expressed opposition to the
legislation. Kevin Knight, Executive Vice President, told the Judiciary
Committee in a letter that Nordstrom believes that interchange fees represent
"a fair price for the services we receive," adding that "we prefer market
competition to regulation."

In a letter to U.S. Rep. John Conyers (D-MI), the Pentagon Federal Credit
Union shared its concern over the legislation, which it believes would
increase costs and decrease card awards programs for its members, while
merchants pocket the savings. Further, the letter underscores that "government
controls involving the establishment of a very complex pricing regime would in
our estimation more advantageously be informed by America's free market
system."

The National Black Chamber of Commerce (NBCC), in another letter to Rep.
Conyers and U.S. Rep. Christopher Cannon (R-UT), voices "grave concerns" about
the bill which it believe would "hinder the ability of our members to continue
to be successful in the market place." Further, they believe that the bill
"circumvents a competitive free-market process on which our members rely."

Similarly, in a letter to U.S. Rep. Hank Johnson (D-GA), the Southern
Christian Leadership Conference (SCLC) states that if passed, the bill would
"raise interest rates for credit card holders, harm local businesses and
threaten community-based banks." The SCLC also emphasizes that "consumers,
local business and neighborhood financial institutions in low- and
middle-income communities could all suffer."

The NBCC and SCLC underscore that the legislation would help large
merchants achieve an even more significant competitive advantage, while
hindering smaller retailers. The SCLC states that the effects of this would
be "disastrous" for its constituents. The NBCC and SCLC also emphasize that
this legislation would negatively impact the ability of credit unions and
community banks to provide services to the huge segments of society that they
serve.

The Department of Justice (DOJ), in a letter to U.S. Rep. Lamar Smith
(R-TX), wrote that the establishment of the three-judge electronic payments
panel raises constitutional concerns, that it would harm competition and
consumers, and "cannot replicate the flexibility that is found in the free
market."

The DOJ stated that granting an antitrust exemption to merchants would
"appear to be the type of naked collusion that the antitrust laws condemn as
per se unlawful because such conduct lacks plausible benefits to competition."

MasterCard believes there is no need for government intervention, and that
it would be inappropriate for the U.S. government to set prices and negotiate
the terms of contracts for private commercial entities, or enable merchants to
negotiate in coercive and collusive ways that would violate the antitrust
laws.

"Such policy decisions in the past have proven to be unworkable, unpopular
and detrimental to the free market economy," said Noah J. Hanft, MasterCard
General Counsel and Chief Franchise Officer. "There is no evidence that
demonstrates that price controls or antitrust exemptions will result in
savings passed along to consumers. To the contrary, we believe such moves
will hurt consumers through higher fees and fewer benefits when they choose to
use their payment cards."

MasterCard will continue to work with our customers and other industry
organizations, to help members of Congress enhance their understanding of how
interchange brings benefits to millions of consumers and merchants around the
world.

Contacts: Sharon Gamsin, MasterCard Worldwide, 914-249-5622,
sgamsin@mastercard.com

SOURCE MasterCard Worldwide

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