Banks aren’t the only ones worried about the fallout from the Durbin amendment. Merchants have their own concerns about what it could mean for them. According to a survey of 98 retailers conducted by the Direct Response Forum Inc., a payments industry education group, merchants are concerned that shoppers will switch over to prepaid cards and what that will mean for their businesses.
A full 47% expressed concern with the need to update recurring payment processes due to the expected decrease in debit card approvals and an increased use of pre-paid cards.
Some merchants say they plan to limit prepaid acceptance.
An additional 11% said they will not accept pre-paid cards for recurring/installment programs which will force them to find another solution for these payments.
This could be the beginning of merchants discouraging various forms of payment based upon the interchange that they are charged. The payments landscape will continue to change based not only on regulation, but also the response of all parties to that regulation.
Read full press release here: http://www.directresponse.org/index.php?option=com_content&view=article&id=128%3Adrf-survey-reveals-merchant-concerns-regarding-durbin-effects&catid=22&Itemid=86
