Professor Muris Testifies in Senate Judiciary Committee Hearing on Credit Card Interchange Rates
Professor Timothy Muris, former Chairman of the Federal Trade Commission, testified as a witness before the Senate Judiciary Committee in a July 20, 2006, hearing to examine credit card interchange rates.
"My testimony this morning addresses four points. First, I will explain why interchange fee agreements in four-party payment systems, such as Visa and MasterCard, are lawful under the Sherman Act. Second, my testimony will make clear that the Visa and MasterCard networks are not cartels of financial institutions. Third, I will discuss two-sided products and explain why increases (or decreases) in interchange levels are not evidence of market power. Finally, I describe the benefits of payment cards to consumer and merchants, and the likely harm in regulating them."