According to the Wall Street Journal, U.S. banks are debating letting debit card transactions bounce like checks. And banks may charge more to merchants in order to guarantee debit card payments. While consumers could face bounce fees like they do for checks. Both developments could steer use away from debit cards to other forms of payment not regulated by Dodd-Frank.
In addition it was recently reported that banks are considering a $50 cap on debit card purchases.
Merchants that have relied on ATMs in store to avoid taking credit and debit card payments may soon find this strategy of steering customers to cash more difficult to implement as banks begin to increase ATM … more
Read more at http://www.cutimes.com/2011/03/15/tester-introduces-interchange-bill more
Read Rules could change how you use debit cards for more information. more
At issue is the ability for criminals to use unencrypted card readers to steal full mag-stripe data which can then be use to make fraudulent purchases. Fraudulent card use is a problem for all merchants (and in particular card not present e-commerce merchants) who shoulder the losses.
Square has made headlines shipping hundreds of thousands of free dongles (square card readers that plug into the iPhone jack for swiping cards). In its announcement, VeriFone demonstrates how promulgating cheap readers enables criminals while making the point that the payments industry needs to take card data security seriously.& … more
First some background. As a merchant services provider, Vantage collects only a very small fraction of the fees merchants pay to perform services ranging from marketing, sales, underwriting, risk management, customer service, terminal services, 24x7 help desk, transaction authorization and settlement, funding, statement reporting, PCI … more
MerchantRates.com’s latest release is faster and more secure than ever. The user experience has been enhanced with updated content, new solutions, better organized Interchange rates by industry and the ability to easily generate and compare multiple proposals. MerchantRates.com is an award-winning small business site featuring:
On Demand Quote and Proposal in under a minute
Customized for your business
Results Delivered Real-Time
Industry specific Interchange Rate & Fee Schedule
Ready to Sign Application
Read complete Month-to-Month Terms
No Hidden Fees
Monitor your … more
According to a BankInfoSecurity.com post, the number of banks on the Federal Deposit Insurance Corp.'s "Problem List" totaled 884. If these institutions are already hurting, will any survive the Feds plan to cap debit Interchange fees?
The Independent Community Bankers of America speculates that the exemption for small banks (<$10 billion) to the Fed Interchange price cap will fail to protect these institutions for the following reasons:
As the largest debit issuers, mega banks will influence networks to limit support of dual pricing schemes that make their cards less attractive to merchants.
Merchants will discriminate against any high-cost cards customers present.
Debit card … more
Facebook also charges a 30% fee for using Facebook Credits (with 500+ million users). So in this alternative payment space it appears that 30% is the top end regardless of number of users. Of course to buy Facebook Credits people would use PayPal. Wouldn’t it be better to simply use PayPal and skip Facebook Credits? Users would skip a currency … more
In the case, Pineda v. Williams-Sonoma Stores, Inc., the California Supreme Court recently ruled that a ZIP code constitutes ‘personal identification information' as that phrase is used in California Civil Code section 1747.08 and that requesting and recording a cardholder's ZIP code is prohibited if it is requested as part of a credit card transaction.
The California Civil Code Section 1747.08 does indicate exceptions which would allow the ZIP code to be requested, including:
When the credit card is being used as a deposit to secure payment in the event of default, loss, damage, or other similar occurrence;
Cash advance transactions;
When the person, firm, partnership, association or corporation accepting the … more
What is PCI?Specifically, the Payment Card Industry Data Security Standard (PCI DSS) prohibits the storage of the full contents of any magnetic-stripe, CVV2 or PIN data. Storage of this type of data is in violation of (PCI DSS) and the card company operating regulations. It also provides security requirements for transmitting card data.
PCI is a data protection standard and it provides a lot of detail on how that protection should be implemented. This means that PCI is not only good for protecting payment card data, but also protecting your business and any personally identifiable information you may have about your customers and employees.
The Financial Risks of a Breach are Real. As the rules & regulations now stand, once your … more