Tag:Interchange rates
Card Association Fees – The Good, The Bad, and The Ugly
Intro: Government Regulation Saves Merchants $$$ in Debit Fees
Remember the act Congress passed last Fall dubbed the Durbin Amendment? It saved businesses a ton of money on debit processing fees. This took an estimated $700M out the budgets of the card networks. Card issuing banks retaliated by charging monthly fees to individuals with Debit accounts. This led to public outrage, the media cried, and banks put a halt to that practice. So, back to square one – the banks are suffering a major earnings shortfall estimated at $700M. Read moreDebit Interchange Regulation
The biggest news of the month, is the regulation of debit interchange. Originally this was proposed as a debit interchange limit of $.12 per transaction as part of the Dodd-Frank Financial Reform bill. After fierce battling for more than a year (and lots of lobbying by the banks), debit interchange is to be regulated to $.21 per transaction and .05% per transaction. As written, this applies to all debit card transactions, PIN or signature as well as Ecommerce/MOTO transactions. It’s not entirely clear when and how this will take effect but stay tuned over the next months. Read more
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PHONE: 800-284-7401 | FAX: 800-660-0318 | Donations made through Payline Giving
Payline Data Services, LLC, a registered ISO/MSP in association with First National Bank of Omaha, Omaha, Nebraska, Member FDIC.
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