Congress Approves Credit Card Processing Regulation Amendment

June 21, 2010, by admin

How the “Act” will affect your Credit Card Processing

 

On June 21, 2010 Congress approved new regulations that will change credit card processing in America as we have known it since its inception in the 1960’s. Included in the Restoring American Financial Stability Act of 2010 (the “Act”), the regulations allow the Federal Reserve to cap debit card interchange at a level that’s “reasonable and proportional” to the cost of processing debit card transactions. Before retailers can accept credit cards they must apply for a merchant account.  All Merchant accounts include contract terms which will be changed by the Act.

 

Since debit cards represent the majority of transactions in the US, the impact on merchant services via radical changes to the merchant account pricing and terms via this new government intervention is potentially significant, though difficult to predict. Read More…