Friday, September 9, 2011

Cost To Accept Debit Cards Will Go Down - Will You Benefit?

In case you have not kept up with the Durbin Amendment to the Dodd-Frank Reform and Consumer Protection Act, it will lower the cost to accept credit cards. As of this writing this new reform will take effect in October 2011. This legislation gives the Federal Reserve the power to cap the interchange fees each time a debit card is used. Does this automatically mean that you as small merchant will benefit? The answer is most likely no. If you have a tier rate structure, as most businesses do, you will not see a rate reduction. We offer a rate structure known as interchange plus pricing. Interchange is the cost from the card associations. Now with interchange going down for debit cards as noted above you will automatically have your costs lowered. Under the tier rate structure your company, also know as the "acquirer" is not covered in this legislation. Don't expect them to pass on these savings to you, the business. It will be a big raise for them. Contact us today so you can benefit and lower your cost of accepting credit cards or call 727-916-7294