PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Issuers Ready for Durbin Impact

Mercator Advisory Group by Mercator Advisory Group
May 24, 2011
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Major debit issuers in the United States are once again beginning to talk about plans to mitigate the impact of the Durbin Amendment on their franchises. Wells Fargo however, is the first such issuer to mention changes to their merchant fee model.

“Wells, of San Francisco, has several options for recouping the $325 million in quarterly revenue it estimates it would lose under the Dodd-Frank Act cap, including: raising minimum account balances, introducing a debit card carrying fee and implementing surcharges on checking accounts, he said.

It also could “unbundle” the services “you provide to merchants,” Stumpf said. What that means is that Wells could conceivably find ways to charge merchants for debit-processing-related services that would not fall under the cap. For example, experts say, a bank could charge stores a fee to guarantee that a transaction will clear, something they now do for free.”

Rumors of potential changes to merchant’s guaranteed payment model have been floating around for some time, but this seems to be first time it’s been stated as a potential strategy by a major issuer. We can’t figure out exactly how that would work and can’t conceive of any significant merchant accepting such a fee, so this statement could just represent one way of taking the spotlight off consumer impact, if only in our imaginations.

Click here to read more.

Tags: Debit
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    commercial payments

    Optimizing Commercial Payments in the Digital Age

    March 21, 2023
    cross-border payments

    Cross-Border Payments: Fighting
    E-Commerce Fraud Using Data

    March 20, 2023
    fraud, ChatGPT-4

    How to Fight Fraud While Still Enabling a Great Online Customer Experience

    March 17, 2023
    RTP

    Financial Institutions Without an RTP Strategy Risk Being Left Behind

    March 16, 2023
    visa chargeback

    New Visa Chargeback Guidelines Will Be a Game Changer

    March 15, 2023
    liquidity management

    Liquidity Management Takes on Increasing Importance in Uncertain Economic Times

    March 14, 2023
    payments

    Key Challenges from Growing Payment Methods and Volume

    March 13, 2023
    Data Governance is a Journey, financial data

    How FIs Can Power Their Operations with a Modern Data Architecture

    March 10, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Autorek complimentary report: Payments Industry Outlook 2023: