Oct
23rd
Sun
23rd
Finally we have the networks, which just increased debit interchange to the maximum allowed for small transactions, costing merchants more (Durbin places a cap on debit interchange; networks previously had special low rates for small transactions, part of an effort to lure spending from cash to plastic). Think for a moment about the four-party model, and where it is weak. Whether through shortsightedness or petulance, the networks appear to be giving small and medium sized merchants another reason to seek alternatives to the four-party model. And many new firms are hoping to provide alternatives.
