Bank of America is expressing optimism that bank card networks will soon act to protect the interest of small ticket merchants from Durbin Amendment repercussions.
During the National Automatic Merchandising Association Coffee Tea & Water Show in Las Vegas on Wednesday, Brian Voigt, the vice president of strategic accounts for Bank of America Merchant Services, spoke to alleviate concerns among small ticket merchants that the Durbin Amendment will result in higher caps for small ticket transactions, VendingMarketwatch.com reports.
The interchange fee cap makes debit card purchases under $10.50 more expensive than existing previous interchange fees.
Bank of America has been working with its BAMS partner – NAMA’s cashless program – to voice the concerns of vending operators to the banks and card issuers.
Voigt said the outlook for small ticket merchants in the near future is “positive,” according to VendingMarketwatch.com.
Sen. Dick Durbin (D-Ill.), the sponsor of the Durbin Amendment, said that he wants the Fed to monitor the costs for small ticket merchants.
“On the regulated banks, that is banks over $10 billion in assets, we have noticed that what we thought would be a ceiling is now becoming a floor as well, with some retailers paying more in interchange fees up to the 24 cents or 21 cent level,” Durbin said, DigitalTransactions.net reports. “The Federal Reserve has, I think, the right and the responsibility to take a look at this change. I think they ought to also take into account when a bank is going to charge customers, as Bank of America is, an additional $5 a month. I mean that is income to the bank based on the debit card. It goes through a different venue than the previous charges, but I think they ought to take that into account.”