We are actually attempting to format this into a more printable version, so I’ll be sure to email you if we have that available.

Thanks again.

Thanks for the insight and observations! I completely agree there will be a significant increase in competition among ISO’s that price at “Cost Plus” and those that provide “Bundled” pricing. However, I find it hard to believe it will be to gain market share in what is already a low margin product for ISO’s. It appears debit card use will likely be slowed if not significantly reduced due to the issuers cutting back or completely eliminating consumer incentives to use debit.

I’m also having difficulty understanding why any bank would want to issue debit cards at all? It would seem to me that they would want to get out of the debit card business altogether either by outsoursing that part of their business or converting their debit cards to credit cards, which are far more profitable than debit. Should that happen, we could see a considerable increase in both the number of credit transactions and the dollar volume.

Washington’s record in passing legislation that actually achieved what it was originally intended to has not always been good. In this case, at least if what I have read is true, it was intended to help merchants and consumers by lowering cost and increasing competition. While the jury is still out on what will ultimately happen, it appears consumers will end up paying more for less and merchants will see lower cost debit transactions moved to the higher cost credit card transactions. If indeed that does happen, this legislation will have accomplished the “exact opposite” of what it intended.

It will all work it’s way out over the next year or so, as have so many other changes in the payments sector have over the years. The one constant we can count on in the payments space is “constant change”! Thanks for your insight and keep up the great work at TSG!

Tony VanBrackle
Founder & Chairman
Solveras Payment Solutions
http://www.Solveras.com