Durbin Amendment Provides for Lower Credit Card Processing Rates
March 30, 2012
Article courtesy of SBAM Approved Partner Midwest Transaction Group
As a result of the Durbin Amendment, the Federal Reserve Board has placed a cap on debit card transactions, putting the interchange fee at 0.05% + 21 cents. This new fee went into effect on October 1, 2011. This could mean significant savings for you!
Keep in mind:
- The cap only applies to debit cards issued by very large banks – it does not include those issued by smaller, community banks or credit unions. Therefore, some debit card interchange fees will not change.
- The best way to ensure that you are going to get these new lower fees is to move to the Interchange Plus pricing model. It is the only model that will automatically pass through the interchange fees at their exact cost, including the new lower debit card fee.
- When you move to Interchange Plus pricing, the new debit fee is not the only fee that can be effected. This model gives processors the ability to better analyze data and potentially offer you even more savings.
- The move to Interchange Plus is easy. If you are already processing with MTG, all you need to do is call us. If you aren’t processing with us, we encourage you to contact your current processor and ask to be moved as soon as possible.
It is not often that government involvement means lower costs for business owners, but this time you could realize some significant savings. Take time to give MTG a call at (888) 599-2209 or request a quote here so you can learn about the benefits of Interchange Plus pricing. Be sure your business takes advantage of all the savings the Durbin Amendment’s new cap on debit fees can provide.