The National Automatic Merchandising Association (NAMA) announced it is working on several fronts to change the impact of the VISA and MasterCard plans to raise debit swipe fees for small ticket transactions.
NAMA is calling on its membership to contact members of Congress and educate them about the harmful impact the legislation will have on the vending industry, NAMA Executive Director and Chief Operating Officer Dan Mathews, NCE5, CSS announced.
The legislation was enacted to bring fundamental changes to the U.S. financial system after the last financial crisis affecting the banking industry, and includes an added “Durbin Amendment” which requires a limit on “swipe fees” that VISA, MasterCard and others can charge for debit card transactions.
Effective Oct. 1, 2011 major changes will cut average debit card swipe fees by approximately 45 percent. Although this will be beneficial for large ticket transactions, there is an adverse impact on the vending industry since the new cap could as much as triple the net “swipe fee” for small transactions. Gateway provider contracts vary from operator to operator, therefore the impact on rates will vary, NAMA notes.
NAMA is exploring options for lessening/eliminating the adverse impact of the new debit card “swipe fee” cap.
NAMA is lobbying members of the Small Business Committee in the U.S. House of representatives.