Soon you may be paying more for your EFT processing.
Perhaps you already know
that October 1, 2011 was the effective date for the Durbin amendment to take
effect. This amendment is supposed to
reduce your processing costs for debit cards.
That was indeed the plan, however since the banks have begun charging
more fees and stopped supporting rewards programs when customers use their
debit cards, the customers have begun using more credit cards with a much
higher fee for processing.Below is the simplest summary of the "Durbin Amendment" that can be found on the internet.
Rule #1 – Debit interchange fees are capped at 21 cents per card
transaction, plus five basis points upon ticket amount, plus one cent for card
issuers who have implemented fraud prevention procedures.
Rule #2 – Debit transactions must be able to be routed through two
unaffiliated networks and merchants can designate preferred routing.
Previously implemented rules noted in the Amendment:
• Companies have the right to set a minimum amount ($10.00 or less)
for which they will accept credit cards (not debit cards) as payment options.• Merchants have the option to offer discounts for cash payments, but cannot favor one card over another.
http://www.durbininterchangeamendment.org/
Regulation II - Debit Card Interchange Fees and Routing [R-1404]
Comments
http://www.federalreserve.gov/generalinfo/foia/index.cfm?doc_id=R-1404&doc_ver=1&ShowAll=YesComments
Rules summary
http://www.chargelogic.com/blog/tag/durbin-amendment/
