Durbin’s Debit a Trick or Treat for Small Merchants
Next week, most merchants will get their first chance to see if they saved money on their card processing fees due to the Fed’s mandated lower debit rates that took effect October 1st. Typically merchants receive monthly statements at the beginning of each new month showing both processing activity and how fees were applied. Some merchants don’t open their statements and many merchants don’t understand how to read them when they do, but clearly if there was ever a statement to pay attention to, it would be the October statement that’s about to be delivered.
Merchant service providers are not required to directly pass the reduced rates of the Fed regulated debit transactions (and the … more