What You Need To Know
Learn about how regulations on various merchantA business that accepts credit cards for goods or services. interchangeThe exchange of debit and credit transaction data between merchant banks and cardholder banks based on an agreement (governed by BASE II [VISA] or INET [MasterCard]) between the participants. The fees charged by the Issuer to the Acquirer. fees for debit card processors can affect your small business.
New federal regulations limit the interchangeThe exchange of debit and credit transaction data between merchant banks and cardholder banks based on an agreement (governed by BASE II [VISA] or INET [MasterCard]) between the participants. The fees charged by the Issuer to the Acquirer. fees that certain debit card processors can charge merchants. Due to the Durbin Amendment to the Dodd-Frank Act of 2010, debit card interchangeThe exchange of debit and credit transaction data between merchant banks and cardholder banks based on an agreement (governed by BASE II [VISA] or INET [MasterCard]) between the participants. The fees charged by the Issuer to the Acquirer. fees are now capped at $0.21 per transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... plus 0.05% of the transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account...., which is down from $0.44 per transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.....
InterchangeThe exchange of debit and credit transaction data between merchant banks and cardholder banks based on an agreement (governed by BASE II [VISA] or INET [MasterCard]) between the participants. The fees charged by the Issuer to the Acquirer. fees are fees that a merchant’s bank (acquiring bank) pays a customer’s bank (issuing bank) when the business accepts credit cards to compensate for transaction-related costs. According to the Heritage Foundation, the change will keep interchangeThe exchange of debit and credit transaction data between merchant banks and cardholder banks based on an agreement (governed by BASE II [VISA] or INET [MasterCard]) between the participants. The fees charged by the Issuer to the Acquirer. fees closer to $0.12 per transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.....
However, interchangeThe exchange of debit and credit transaction data between merchant banks and cardholder banks based on an agreement (governed by BASE II [VISA] or INET [MasterCard]) between the participants. The fees charged by the Issuer to the Acquirer. fees don’t always appear on your statements, making it tricky for small business owners to know how the fees affect them.
Who Will Benefit?
According to NMA CEO Heather Altepeter, “A merchantA business that accepts credit cards for goods or services. needs to be processing a substantial amount to see savings from the recent amendments.” Restaurateurs are among those who may see lower bills, since customers tend to use debit cards on small ticket items. Altepeter further explains, “In a business like a coffee shop that does less than $15 for the average ticketThe average amount of each sale made by a merchant., you might see some savings on debit card transactions.”
The new regulations to interchangeThe exchange of debit and credit transaction data between merchant banks and cardholder banks based on an agreement (governed by BASE II [VISA] or INET [MasterCard]) between the participants. The fees charged by the Issuer to the Acquirer. fees only affect a minority of merchants, says Altepeter. What’s not affected? Credit card interchangeThe exchange of debit and credit transaction data between merchant banks and cardholder banks based on an agreement (governed by BASE II [VISA] or INET [MasterCard]) between the participants. The fees charged by the Issuer to the Acquirer. fees, for instance. Also, fees for debit cards issued by smaller card issuers are capped for banks with assets of more than $10 billion.
Minimizing Card Fees
Even if your bank is subject to the new caps, card processors could shift fees elsewhere to make up for their losses. Financial institutions like NMA have opted to abide by the lower fees to attract clients.
Here are three basic ways to become better educated on interchangeThe exchange of debit and credit transaction data between merchant banks and cardholder banks based on an agreement (governed by BASE II [VISA] or INET [MasterCard]) between the participants. The fees charged by the Issuer to the Acquirer. fees:
- Follow Up – Make sure your account is set up for your specific type of business.
- Negotiation – Talk with your acquirerAny bank, financial institution, and public or private company that maintains a seller’s credit card processing relationship and receives all transactions from the seller to be distributed to the credit card issuing banks. or processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... about ways to take advantage of lower debit card interchangeThe exchange of debit and credit transaction data between merchant banks and cardholder banks based on an agreement (governed by BASE II [VISA] or INET [MasterCard]) between the participants. The fees charged by the Issuer to the Acquirer. fees. Tell them you want to be on the optimal pricing program for your type of business, and review your merchant statementA summary produced and mailed at specified intervals, usually monthly, which details debits and credits to the merchant depository account. with them to understand how all fees are reflected in your monthly.
- Coursework – Take a course through a local small business development center on credit and debit card fee structures.