Or ‘How Green Was My Folly’…
Forgive the play on words. It’s not all that bad, I just absolutely abhor when the government gets in and messes with things when it has no concept of the repercussions. In this case (just this one), the outcome is positive. At least for now.
Once we get past all the hocus pocus and rhetoric, the Durbin Ammendment simply puts a cap on fees that the banks charge on debit card charges to businesses, not to individuals. If you own a business, and you accept plastic, come this October 1st your fees will go down on each transaction that is made at your business and paid with a debit card. The main argument behind this is simply that it is not a line of credit, and businesses should not be charged if a customer is paying with a debit card as it is against a finite amount of cash in a bank as opposed to a line of credit.
This will affect your business. At the end of the day, many people simply shrug and apathetically say, “This won’t really affect me.” Wrong. If you take plastic, this will affect you unless you are the 4% or less of businesses whose individual transactions are so high, no one purchases from them via debit. take this company I was consulting for. They needed to purchase a credit card processing software package and they did $30 million a year in credit card sales. Wait a minute… that’s not accurate enough. They did 30 $1,000,000 transactions a year. Every year. Goodie for them. They theoretically had the ability to accept credit cards, but unless a customer had $1 million cash sitting in their account; there was no sale.
How will it affect me? That’s a much better question.