As you may already be aware, the Durbin Amendment to the Dodd Frank Act, went into effect on October 1st. This legislation directly addresses debit card transaction fees and the caps that have now been levied. Now, no matter how debit cards are processed in your business, the maximum fees that will be charged to your processor is $.21 +.05% ( and in some cases for issuers that provide additional security measures, there can be an additional $.01). Now, make sure you totally grasp those figures. These are what the processor will be charged for processing those transactions but what you are being charged can vary widely.
There are also some caveats to the fees discussed above. These "maximums" referred only apply to those banks that are considered "regulated" which means they have assets in excess of $10 billion. Non-regulated banks do not have a maximum on debit/check cards. Currently, there is no "list" available of which banks are regulated and non-regulated. Now, let's face it, as a business owner do you really have the time or need to be this concerned about all of this? I'm certain that if one felt so inclined, thorough research on the internet, could probably provide some information for you. But, is this something that you really want to pursue? I didn't think so.
Let's discuss debits a bit more to give you a better understanding. If you are on any kind of tiered pricing model, you will never know exactly what you are being charged for swiped debit cards. Tiered pricing is, quite frankly a fairly antiquated form or pricing but many merchants are still priced this way. Your processor can place all the different card and transaction types in any category they deem appropriate or, translated a different way...more profitable for them. This, of course, would also apply to debit card transactions as well.. This is good for them and, of course, not so good for you as the merchant. The only way you will ever know for sure, what these, or any of your card transactions are costing you, is to be priced on Cost-Plus orInterchange-Plus pricing. I've written on this many times before but just to reiterate, Cost-Plus pricing is the most transparent form of pricing and the best way to more fully understand all your costs. If your business is not currently priced this way, change processors now but, make sure to do your own due diligence in the process.
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:
Learn what your processor doesn't want you to know
Article Source: http://EzineArticles.com/?expert=Michael_Saum
Tidak ada komentar:
Posting Komentar