Durbin now wants to keep Interchange 'as is' for debit cards used by the government by carving out an exemption to his own amendment. As reported in Digital Transactions, Durbin said he would write language to exempt transactions on "government cards so … more
At the same time, U.S. cardholders increasingly find it difficult to use mag-stripe cards outside the U.S. As we discussed here, the U.S. EMV strategy hinges on contactless / NFC adoption. Some believe EMV 2.0 in … more
What does this mean for U.S. merchants? First, take a look at your most recent April merchant statement. If you are not on a direct Interchange pass through pricing plan already then you need to take action. Open your browser and … more
The shift from paper base to digital currency has been quietly transformative. A panel of financial experts discuss digital currency, trends, innovation and regulatory policies to consider and avoid.
To start, digital money trends show favorable growth. Between 2003 and 2008, card-based transactions grew by 13% worldwide. And government use is part of this growth. For example, the U.S. federal government is using purchasing cards for procurement to save $1.7 billion a year according to a GAO study. Beyond cards, consumers have embraced new technologies that facilitate convenient and secure electronic payments across a wide range of platforms.
While banks are regulated, what about a host of non-bank participants who provide … more
Effective July 1, 2010, acquirers must ensure that merchants only use PA-DSS compliant applications.
What does this mean to merchants? If you are using old payment devices or software, you may need to upgrade. Merchants using point of sale register systems should inquire with their point of sale vendor about their compliance status if they have not already done so. Merchants should also review the information posted on the PCI Security Standards Council website at https://www.pcisecuritystandards.org/security_standards/vpa/ or on the Visa website at http://usa.visa.com/merchants/risk_management/cisp.html?ep=v_sym_cisp.
PA- … more
Converting paper to digital images became law in 2003 with the passage of the Check Clearing for the 21st Century Act (Check21) and the initial implementation meant large companies and banks didn’t have to ship paper all around the country.
Today, more and more of the paper check imaging is being done by merchants and businesses that accept them. Community banks led the way in deploying remote-deposit check scanners as a way to offset the competitive advantage mega banks had with their branch network. By scanning and electronically depositing check images, community banks were able to attract business customers and businesses … more
Immediately switch to an Interchange pass-through pricing plan. For example, effective October 2010, Visa will extend Small Ticket Interchange to most merchants. This is an effective reduction in the overall Interchange costs for most merchants. However, few merchants will benefit since there is no difference between a transaction over or under $15 in their current merchant account contract. In fact this is just one example. Most merchants are … more
In our blog post Visa Changes Debit Debate, Backs Contactless, we suggested that extending Visa's No Signature Required (NSR) program (on transactions <$25) to most merchants (along with converging signature and PIN debit rates and expanding small ticket Interchange on transactions <$15) were policies that supported contactless payments.
Changing ingrained behavior takes time and doing it in steps makes sense. Step one, training merchants and … more
In an interview in the June/July 2009 issue of Cards&Payments magazine, Ellen Richey, global head of enterprise risk for Visa, discussed the adoption of chip technology to make purchases more secure. Richey said “the U.S is not going to be adopting a chip-and-PIN credit card or debit card any time in the very near future” suggesting that in the U.S., the deployment of a contactless-chip card network may not include a PIN component.
In October 2009, Best Buy announced that it would discontinue it’s acceptance of Visa contactless payment cards. Why? Best Buy reportedly took issue that Visa contactless lacked the option of PIN acceptance, while payment industry … more
Visa Signature Debit
Fee Program Current Fee April 2010 Fee
CPS Retail Debit 1.03% + $0.15 0.95% + $0.20
CPS Supermarket Debit 1.03% + $0.15 ($0.35 max) 0.95% + $0.20 ($0.35 max)
CPS Service Station Debit 0.70% + $0.17 ($0.95 max) 0.75% + $0.17 ($0.95 max)
CPS Automated Fuel Dispenser Debit 0.70% + $0.17 ($0.95 max) 0.75% + $0.17 ($0.95 max)
Interlink PIN Debit
Visa has announced changes in the pricing for Interlink debit transactions.
Fee … more