“According to analysts, Heartland “could gain market share as a result of the new debit card rules, which the Federal Reserve Board finalized last month, because it uses a pricing model in which it passes along changes in interchange costs directly to merchants. Some acquirers charge merchants a marked-up cost,” writes DigitalTransactionNews.com.”
With so many relationships in play as a result of Durbin, now is the best time to point out competitive differences for stakeholders in the debit payment ecosystem. From a merchant perspective in the near term, that means looking carefully at pricing transparency. This strategy also underscores the opportunity merchants might have to pass some of these savings onto consumers in the form of explicit discounts or issuer alliances – all important considerations in a consumer market where value-shopping is king.
