This week marks the first time business owners will receive their credit card processing statements and have something new to look at in a long time.  For some, the October 2011 processing statement will reveal vast savings passed through from the Durbin Amendment automatically, while others will look at their October 2011 processing statement expectantly only to be disappointed and find that they have paid the same as they did in September.  As if credit card pricing and costs were not complicated enough, this new amendment adds an additional layer of complexity that we will attempt to break down.

I mentioned above that some people will see instant savings.  The business owners who are seeing changes in their rates are most likely on an interchange plus pricing model, this pricing model maintains a fixed markup above cost on every transaction, and since the Durbin Amendment essentially lowered “cost” on debit and check card transactions, the savings are built in to the existing pricing structure.

For those business owners who are on a tiered pricing model, the savings will not be instant or passed along in the same way.  If you look at your statement, and you can’t tell much of a difference in how much you are being charged, then chances are you have not received any discount owed to you from the Durbin Amendment.  The best way to achieve this goal is to establish a new contract with new pricing that will pass along the Durbin savings.  At Sure Payment Solutions, we have been preparing for the Durbin Amendment to go into effect and are prepared with a variety of tools to help business owners understand their rates and just how much money they can save.

The full effect expected from the Durbin Amendment has yet to take shape, but it is clear that from a consumer standpoint, Debit cards are not what they used to be.  Banks have begun charging monthly fees and usage fees to card holders to offset some of the losses suffered by the cap on interchange fees for debit and check card categories.  Historically, Debit cards were a cheap and easy alternative to carrying cash, but now that there is a cost associated, it is likely that debit cards will become increasingly less popular.  The snowball effect from this essentially reduces the effectiveness of the Durbin Amendment as fewer consumers use debit cards, fewer merchants accept them (despite the savings) and suddenly all the “good” Durbin did will be null and void.

At this point there is very little we can do to change any of that.  Instead, what we can do is ensure that our clients receive the best and lowest rates available thanks to the Durbin Amendment.  The average customer is saving hundreds of dollars every month and all it takes is a simple phone call.  Account representatives will be standing by to speak with you.  Let us analyze your October statement with you and we’ll be able to tell you if you’re getting the Durbin Savings already or not.  From there, its simply your decision whether or not you want to take advantage of this historic amendment or allow it to pass on by.