The new Durbin legislation could represent a windfall for online business owners across the country. While much has been made of the negatives of this legislation, those ecommerce websites that are set up with an updated account can reap significant savings over their current margins.
CHARLESTOWN, Mass., Oct. 5, 2011 /PRNewswire/ -- The new Durbin legislation could represent a windfall for online business owners across the country. While much has been made of the negatives of this legislation, those ecommerce websites that are set up with an updated online merchant account that takes advantage of the new Durbin pricing available, can reap significant savings over their current margins. Specifically for online businesses this legislation represents an additional reason to consider a switch from a 3rd party provider like PayPal to a traditional merchant account.
Due to the new legislation, the difference in transaction costs on purchases made with debit cards will be expanded greatly. These savings will only be seen by websites that have been set up with a merchant account that passes on the savings. Along with Durbin pricing, online business owners should be looking for additional features in their internet merchant service provider including the ease of use and installation, as well as the security it provides to consumers.
This is another reason small businesses are encouraged to avoid working with merchant processors that require contracts or cancellation fees. The Durbin legislation forces banks and credit card issuers to limit processing costs, but merchant processors were unaffected by the legislation, with the hope that market forces will drive them to lower their prices in turn or lose customers. For those businesses currently under contract, there is no way to guarantee that Durbin savings will be realized. By working with a processor that does not employ contracts, merchants will always have the ability to realize future savings.
BestOnlineMerchantAccounts.com offers in-depth analysis on the top online merchant account providers available to small business owners today. These online merchant account reviews cover the ease of use, pricing, features and security ratings for each provider, as well as breakdowns on the companies' history and customer support. Additionally the website has numerous articles containing best practices and advice for improving an online business website both topics specific to credit card processing and general usability.
SOURCE BestOnlineMerchantAccounts.com
