mission vending Posted October 5, 2011 Share Posted October 5, 2011 Here it is: Date: October 1, 2011 To: All NAMA Members From: COO Dan Mathews, Chairman Brad Ellis & the NAMA Board of Directors Subject: DEBIT CARD “SWIPE FEE” CHANGES The “Dodd-Frank Financial Reform Legislation” was enacted to bring fundamental changes to the U.S. financial system after the last financial crisis affecting the banking industry. The added “Durbin Amendment” required a limit on “swipe fees” that VISA, MasterCard and others can charge for debit card transactions. Effective today, October 1, 2011 major changes will cut average debit card swipe fees by approximately 45%. Although this will be beneficial for large ticket transactions there is an adverse impact on the vending industry due to our typical “small ticket transactions”. This new cap could as much as triple the net “swipe fee” for small transactions (gateway provider contracts vary from operator to operator therefore the impact on rates will vary). Card Companies/Banks now have the option to charge up to $.21 per transaction plus an additional .05% of the transaction to mitigate fraud losses and $.01 for fraud protection. The situation is changing every day so contact your provider directly to ask how the new rate caps will impact your business. What you can do: Immediately contact your Congressional Representative and Senator to educate them on the adverse reaction this will have on your business, your customers and jobs. There are over 10,000 vending companies in the USA serving millions of consumers everyday. Cost increases will have to be passed onto consumers or debit card acceptance will be suspended Ask your provider to negotiate directly with VISA/MC on your behalf What NAMA is doing: Actively engaged in exploring options for lessening/eliminating the adverse impact of the new debit card “swipe fee” cap Lobbying members of the Small Business Committee in the US House of representatives Mobilizing a grassroots effort to educate politicians on the adverse and clearly unintended consequences of this new law Using NAMA “Action Alerts” to communicate to our membership and provide appropriate talking points Directly and indirectly negotiating with VISA/MasterCard Adding a new link on the NAMA website to provide up-to-date information Thank you. Link to comment Share on other sites More sharing options...
Beach Bum Vending Posted October 5, 2011 Share Posted October 5, 2011 Interesting read thanks mission Link to comment Share on other sites More sharing options...
danielirubin Posted October 5, 2011 Share Posted October 5, 2011 I really hope this goes well for us... because I think credit card readers on vending machines is the future Link to comment Share on other sites More sharing options...
mission vending Posted October 5, 2011 Author Share Posted October 5, 2011 It won't be the future if the banks insist on taking max fees per swipe no matter the $$ amount of the transaction. Link to comment Share on other sites More sharing options...
VagabondVending Posted October 5, 2011 Share Posted October 5, 2011 What do people think is the right next step for vending operators? If an operator is seeing one of his/her machines making about 20-40% of their sales from credit/debit cards they'll still be willing to pay more to the debit/credit card processing companies to get those sales. Is the right step to just raise prices in the machine with the credit card reader to match the slight uptick in debit card processing fees? Operators could just raise prices and inform customers that prices have increased due to the hike in debit card processing fees. Also, this doesn't just affect vending operators. It affects much bigger places like Starbucks, Fast food restaurants, etc. that are making $millions in revenue everyday from these small ticket purchases. What do you all think we can do as independent vending operators? Contact congress? Link to comment Share on other sites More sharing options...
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