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Bankcard Financial Group LLC News
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http://www.processingforless.com
39 Mill Street,
Suite 2,
Berlin, CT 06037
Tel: (800) 899-1212
Fax: (800) 222-1209
Since 2008, Bankcard Financial Group has become an industry leading Business Funding & Merchant Services provider. We are able to offer far better rates, extremely low pricing on equipment, and unsurpassed customer service.
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IMPORTANT DEBIT CARD CHANGES THAT WILL DRASTICALLY AFFECT YOUR BOTTOM LINE!
July 31, 2011
The Durbin Amendment, an addition to the Wall Street Reform and Consumer Protection Act of 2010, has caused great controversy. The Federal Reserve ruled that processors would be limited, when charging their Merchants who accept debit cards, since interchange fees would be capped at 12 cents plus 0.05% of the transaction, with the possibility of an additional cent if certain criteria are met. Each debit card should be able to be processed on at least two independent networks, and the rules will begin to take effect in October.The amendment is rather complex, but the two provisions that are still being debated, pending the Federal Reserve's decision, are:
1. A cap of 7 to 12 cents on most debit card swipes fees, a decline of about 80% from present levels 2. The introduction of competition, by giving merchants a choice to which debit network they process transactions over. For example, present arrangements effectively force merchants to process many Visa transactions over the STAR network, even if competitors like PULSE and NYCE offer to conduct the same transaction at a lower processing price.
The provisions that are already in place include: 1. Merchants can impose a $10 minimum on credit card transactions this number can be adjusted by the Fed as they see fit). Previously, Visa and MasterCard banned this practice in their merchant agreements 2. Merchants are allowed to give discounts at the register to those who pay with cash or debit cards. Previously, Visa and MasterCard banned this practice in their merchant agreements.
For further information concerning the topic please contact our fellow Chamber member, Sean Gunning at Bankcard Financial Group. He can be reached at (800) 899-1212
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