Last year, some legislation was passed that reduced the cost of processing certain debit transactions, specifically Visa and MasterCard check card transactions. The Durbin Amendment, as it’s called, was passed in an effort to reduce the costs associated with processing transactions for business owners. Unfortunately, the way that the law was written, it capped what the issuing banks could charge to the processors, but it didn’t do anything to ensure that those savings would be passed along to merchants.
While you can count on processors to adjust your rates if there are ever increases in interchange rates (which are reviewed every 6 months usually), it’s funny to see which processors are fair enough to work the other way around. Interchange rates are rarely ever reduced, so it’s not something that we get to examine very often.
What we found was that the overwhelming majority of processors didn’t do anything to pass these savings along to most of their merchants. Unless you happened to be priced on a certain pricing model known as Interchange Plus pricing, where your costs are tied directly with current interchange rates, it’s likely that your processor did anything to even share the savings with you.
Free Rate Review
If you are having a hard time knowing whether or not you are saving the money that you deserve, give us a call. We’re happy to do a rate review for you to let you know exactly what’s going on with your rates and fees. If you aren’t getting any of the savings that Durbin intended, or if you’re just overpaying for certain things, we’ll let you know, and if you’re interested you can see what we’d charge you for the same thing and see exactly how much money you could save by working with us.