New Debit & Check Card Regulation
The biggest news of the month, is the regulation of debit interchange. After fierce battling for more than a year, 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 E-commerce/MOTO transactions. It’s not entirely clear when and how this will take effect but stay tuned over the next months.
The biggest winners in this regulation are once again the super retailers who process millions of transactions per year. Small and medium size merchants can expect savings, but it will not likely be anything as monumental as the Walmart’s and Amazon’s out there. There’s going to be a lot of misinformation flying and aggressive marketing over the next year as many processors will take advantage of the turmoil, misinformation, and instability in the merchant account industry. I would strongly suggest exercising caution in anyone making sensational claims about lowering your rates. Major industry changes offer the greatest opportunity to get scammed into a bad merchant account. Just remember that almost every processor has roughly the same hard costs, so if they are unrealistically lowering fees in one place, they have to make them up somewhere else.