September 01, 2011 08:05 AM Eastern Daylight Time
President of nation’s fifth largest payments processor provides expert commentary on Durbin Amendment interchange reform
PRINCETON, N.J.--(BUSINESS WIRE)--Heartland Payment Systems®:
“Just be assured that there will be opportunities for us to keep some of [the debit fee reduction]. I mean the thought that a very large merchant and a very small merchant are treated exactly the same is not how it works in a free enterprise system.”
WHAT:
| When The Durbin Amendment, part of the Dodd-Frank Wall Street Reform Act, goes into effect on October 1, 2011, debit card interchange rates will be capped at 21 cents per transaction plus 0.05 percent of the volume of transaction — a significant reduction from the average of 44 cents that merchants currently pay per debit card purchase. | |
Although this legislation was designed to provide business owners relief from “swipe” fees, some processors have publicly announced that they will keep the funds to bolster their own profits. In fact, the chief executive officer of a major processor recently told Wall Street, “Just be assured that there will be opportunities for us to keep some of [the debit fee reduction]. I mean the thought that a very large merchant and a very small merchant are treated exactly the same is not how it works in a free enterprise system.”
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| Merchants and business owners across the U.S. need to be educated about the potential pitfalls that can prevent them from realizing the cost savings they are rightfully due. | ||
WHO:
| Bob Baldwin, president at Heartland Payment Systems and a card processing expert, can speak to the effects of the Durbin Amendment on the industry at large as well as merchants large and small. He can also provide critical information that business owners need to know and suggested action steps to ensure they receive 100 percent of the intended savings this October when the reform goes into effect. | |
About Heartland Payment Systems
Heartland Payment Systems, Inc. (NYSE: HPY), the fifth largest payments processor in the United States, delivers credit/debit/prepaid card processing, gift marketing and loyalty programs, payroll, check management and related business solutions to more than 250,000 business locations nationwide. A FORTUNE 1000 company, Heartland is the founding supporter of The Merchant Bill of Rights, a public advocacy initiative that educates merchants about fair credit and debit card processing practices. The company is also a leader in the development of end-to-end encryption technology designed to protect cardholder data, rendering it useless to cybercriminals. For more information, please visitHeartlandPaymentSystems.com, MerchantBillOfRights.org, CostOfABurger.com and E3secure.com.
Contacts
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