eCommerce Left Behind
11, 2012 - 14:26:09
Since the Durbin Amendment regulating debit interchange took effect on October 1st, 2011, most eRetailers are not realizing the benefits. An Internet Retailer survey recently revealed only 14.6% of 254 online merchants say they're paying lower fees on debit card transactions; 17.7% say they're paying more and 67.7% say their fees have not changed in the past year (Click here to view article). Why is that?
eRetailers may not be seeing the benefits of the Durbin Amendment since many processors are not passing on the savings as intended by the law, and instead are keeping the extra interchange for themselves. At Wind River Financial, we pass 100% of the Durbin Amendment savings down to our merchants, leading the industry with 100% of our online merchants paying lower fees (Click here for the Debit Calculator
)! Why else might eRetailers not be realizing the benefits of Durbin?
Some businesses transitioning to eCommerce will simply use the credit card processor recommended by the web developer. Web developers often recommend processors to leverage prior integration work with other clients, or because of undisclosed referral fees. In any event, there are alternatives, just as there are other critical factors involved in the selection process. Business owners are ultimately responsible for the credit card processing, and thus will select a processor based upon service, support, security, and fees. eRetailers that take an active role in the credit card processor selection, can ensure they are working with a processor that will pass along the Durbin Savings…rather than run the risk of being left behind!
So, if you have any eCommerce projects on the horizon, make sure to give your relationship manager a call at 1-800-704-7253 to discuss how we can work with your web developer and the many online payment solutions we offer at Wind River Financial.
By: Amanda Block