Archives / 2010 / August
  • The Benefits of Paperless Pay

    The recently signed financial regulatory overhaul bill named the Dodd-Frank Wall Street Reform and Consumer Protection Act is expected to reduce the debit card Interchange fees used to support free consumer check accounts. This is on top of the loss of overdraft fee income. As a result, big banks are requiring higher minimum balances to qualify for a free checking and adding other service fees.

    What will this mean for employers?  For one, employees may opt to close their traditional bank accounts. And if your employees move from banked to unbanked status, this will impact their participation in direct deposit.  Fortunately, the Dodd-Frank act offered an exemption for reloadable prepaid and government-administered debit card programs. This compromise is an attempt to protect the … more

  • Merchant Card Acceptance changes under the Dodd-Frank Act

    The Dodd-Frank Wall Street Reform and Consumer Protection Act contains two provisions that impact card acceptance by US merchants:

    Using discounts to incentivize preferred payment types

    Setting thresholds for the acceptance of credit cards for payment.

    These items do not have explicit “in force” dates, so should be effective now that the bill was signed into law on July 21, 2010.

    Under the law, payment card networks are restricted from limiting merchants’ ability to offer discounts to incentivize customers to use payment types preferred by the merchants. Merchants would have legal protection under the law to offer customers discounts to pay with cash, check, or debit instead of a credit card. Merchants would not be able to offer a discount for payment with one … more

by Ty Hardison

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