Durbin Amendment and Debit Transaction Savings | News and Society

How familiar are you with the Durbin Amendment? The ?what? amendment, you may be saying. Maybe you?ve heard about it in the news but didn?t really see the application to you and your business. Then again, it possibly slipped right by you. If you accept debit cards for payment of goods/services in your business, you need to understand this new legislation. It will have a great impact in savings to your bottom line?maybe! Let me expand on that a bit more for you if I might.

Congress has recently passed the Durbin amendment which is a landmark decision. This is the first time we have ever seen this large of a reduction in processing costs. This cuts the costs for Pin Based Debit and Signature debit almost in half. Pin based debit and signature debit combined make up to 50 ? 70% of the processing in the marketplace, nationwide. Imagine paying up to 1.00% or half of what you currently pay on 50% -70% of the cards you process.

This reduction on costs does not go into effect until October 1st, 2011. It?s up to you to take action and make sure you see these savings. Many processors are choosing not to pass through these savings.

As mentioned above, these pricing changes from the Durbin Amendment take effect on October 1, 2011. Until this time, merchants will still be charged the same as they are today. On October 1st, a processor can choose to pass through the new reduction in costs, or not! However, if you are on Cost-Plus or Interchange-Plus pricing, the savings will automatically be passed along. If, on the other hand, you?re not on this type of pricing, you should be asking your processor why, or look for another provider who is willing to provide this more transparent form of pricing.

What kind of relationship do you have with your current provider? Does your rep, and the company, truly have a keen interest in maintaining a mutually rewarding relationship with you? Have they frequently been in touch with you to see how things are going and make beneficial cost-savings, profit increasing recommendations to you? Are they willingly being totally transparent in their pricing structure that they have set up for you? These are important questions to be asking yourself and now, more than ever.

I know that when it comes to owning and operating a business, and continuing to remain profitable in today?s economic environment, there are a myriad of things that vie for your attention. Looking more in depth at your credit card processing is probably not high on your list of priorities. Let me encourage you, however, with the introduction of this Durbin Amendment, you need to become fully aware of what you?re paying for, and furthermore, what you shouldn?t be paying for..

Thanks for reading and please pass this article on to others that you feel could benefit.

My name is Michael Saum and I?m a 63 year old semi-retired, merchant services rep. In my current capacity, I write informative, articles relative to the acceptance of credit/debit cards in your business I also offer my comprehensive, FREE, email course, on the subject of credit card processing with NO SOLICITATION or HYPE. You can enroll by visiting the following website: http://creditcardprocessingknowledge.com

Learn what your processor doesn?t want you to know

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This entry was posted on August 9, 2011, 4:04 pm and is filed under Economic. You can follow any responses to this entry through RSS 2.0. You can leave a response, or trackback from your own site.

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