Merchant Account & Credit Card Processing

Bank of America and other credit card processing companies that have been affected by the Durbin amendment have decided to not charge their customers a monthly fee for using their debit card. Bank of America indicated that they are responding to feedback from their customers. My guess is that they will wait a while for the dust to settle and then implement a new fee either on customers or merchants. Let’s wait and see.

Higher fees for the customers that can afford it least. The Durbin amendment put a cap on the fees that credit card processing companies can charge for debit fees. What was the response? Bank of America instituted a $5 a month fee for anyone who uses a debit card. So basically what happened is instead of businesses absorbing this cost, a new fee is placed on everyone who uses a debit card including those who can least afford it.

Senator Durbin’s response has been to start an email campaign that demonizes Bank of America for their “excessive profits”. All the people receiving this email shoud hit the reply button and place the blame squarely where it belongs…On the politicians that try to legislate profits. Bank of America is entitled to profits and if they are gouging people then surely competition will come in and take their customers. If politicians want to lower the fees that Bank of America charges they should pool their money together and buy enough stock of Bank of America to have a say in what fees they charge. The problem with that is if their own money was at risk as owners of the stock they probably wouldn’t mind the fee. Politicians are always experts at telling other people how to spend their money.

With all that is happening in the economy today we thought it would be interesting to further explore Inflation. Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. As Inflation rises, every dollar will buy a smaller percentage of a good. Did you know that a gallon of gas may cost you $11.70 by the year 2020. Check out some of the other goods such as bread, groceries, beef, pork, chicken, electricity, coffee, a pair of jeans, and T-Shirts in this infographic.

[CLICK IMAGE TO ENLARGE]

To put this graphic on your website, just highlight, copy and paste the HTML code below:

<a href="http://www.instamerchant.com/blog/inflation-look-into-the-future/"><img src="http://www.instamerchant.com/blog/wp-content/uploads/2011/08/inflation-look-into-the-future.jpeg" alt="A Look into the Future of Inflation" width="100%" /></a>

I just read an article where a couple of researchers found it pretty easy to commit fraud using the square dongle card reader. Square is now working on a encryption system. I have no idea how they are allowed to process credit cards with out even doing something as simple as encrypting the card data.

The article indicated that Square didn’t see this as a significant threat as there are easier ways to commit credit card fraud. Somehow that doesn’t make me feel better. I’m sure they will close the security threat now posed but in the mean time I would be very wary of using the Square credit card processing system.

Visa is starting to speed up the implementation EMV contact and contactless chip technology.  This will allow merchants to use NFC technology to accept credit cards.  Whether you are ready or not, the time is quickly coming where you will be able to touch your phone to a merchants terminal and it will make the payment through a credit card you have on your phone.  I don’t know about anyone else but it will be nice to not feel like George Costanza carrying around a ton of credit cards in my wallet.