Debit card reform coming on July 21

June 2011

The Federal Reserve has been granted the authority to regulate the costs charged by banks for Debit card transactions due to implementation of the Durbin Amendment. The revised cost that the Fed has proposed for Debit transactions is $0.12 per transaction, which is significantly lower than the rates currently charged. For example, Visa – the largest debit card processor through their Interlink network – currently charges 0.95% plus $0.235 per transaction for debit card transactions. The proposed changes are scheduled to go into effect on July 21, 2011, and while the Fed may modify this proposed rate reduction, credit card processors expect a dramatic reduction in the costs for debit card transactions.

Why didn’t I say “merchants” or your winery will expect this rate reduction?
This is because the cost reductions may or may not be passed along to you – the business owner. It’s clear that your credit card processors expect to have lower costs, but they may or may not choose to pass along the lower rates.

Most credit card processing accounts have a teaser rate or multi-tiered pricing structure, with different rates for different card types. With this traditional merchant account, debit card rate decreases will NOT be passed along to you the business owner because the rates that you pay are fixed. So when debit card costs shrink, the rate your business is paying is not automatically reduced, you’ll have to request a rate review and hope for a cost reduction.
But if you’re a Winery Payment Solutions client all cost reductions WILL be passed through to you immediately without any action required. This is because Winery Payment Solutions provides interchange pass through accounts so reductions in interchange rates or costs are passed through to your business immediately. We say bring on the cost reductions, our winery and related business clients can use the savings!

What if you don’t have an interchange pass through account?
Most credit card processors don’t offer interchange pass through, so it’s expected that the credit card processor will keep all the savings to themselves. Let’s be honest, most credit card processors are greedy and don’t miss any opportunity to increase your rates or retain your savings. The only way you can be confident that cost savings are immediately shared with your business is to have a true pass-through account offered by Winery Payment Solutions.

Our philosophy:
You’ve graduated to a higher level of service with Winery Payment Solutions and you will receive every cost reduction immediately and without asking. With Winery Payment Solutions you get the personal service you deserve and the savings are automatic, don’t settle for anything less.

Here are just some of the money saving solutions that Winery Payment Solutions offers.

One Account for Everything

You don't need multiple accounts, statement and monthly fees for Visa, MasterCard, Discover and American Express. Stop paying additional monthly fees for statements when you can have a consolidated statement and one account for all your transactions. In addition you don't need a separate merchant account for E-Commerce, Retail sales and Mobile payments. All you need is one merchant account for all your sales channels and no additional fees.

Online Terminal

If you'd like to accept payments without a credit card machine to further reduce your costs and power your wine club, you can use our virtual terminal for all or some of your transactions. You can also connect a card reader and receipt printer to your PC and have credit card machine wherever you take your computer.

Electronic Checks

With our award winning check processing solutions you can scan a check and get paid fast. If you want to stop going to the bank every day to deposit checks, or you want to make sure a check is good before the customer leaves, our e-check solution is right for you.

Gift Cards

Offer your customers the option to buy and pay with gift cards. With every merchant account, you get the first 50 standard gift cards for FREE.

Low Cost Credit Card Machines

With any merchant account we offer credit card machines to meet your needs at the lowest prices possible. Don't fall for a free terminal, there will be fees charged later to make up for the "giveaway".

Merchant Service Advisor

Signing up is a simple step away.

Debit card reform coming on July 21

World Class Payment Solutions

Already with another provider?

We'll pay your termination fee if you move your account.

Call Winery Payment Solutions, Inc. at 800-993-6300.