Consumer outcry over higher financial services costs, including fees tied directly to debit card use, have reached a fever pitch. What still seems to be missing is the voice of the merchant and specifically, any benefits consumers may receive from merchants as a result of this legislation.
Heartland Merchant Processing is emphasizing once again, how they intend to pass through interchange fee savings to all their merchants. It would be headline grabbing indeed if at least one merchant came out with a $60.00 per year savings offer to consumers if they pay with their debit card.
Although this legislation was designed to provide business owners relief from card processing costs, some processors have publicly announced that they will keep the funds to bolster their own profits. The industry encountered a similar situation in 2003 with the Wal-Mart settlement that lowered debit interchange rates by approximately one-third. Rather than pass the savings through to their merchants, many processors kept the savings to boost their own profits.