Continued increases in Debit processing fees

Recent actions by the Card Associations have created a revenue problem for Independent Sales Organizations and companies that market electronic payment services. Visa's recent purchase of CyberSource and its Authorize.net payment gateways creates a problem for payment services companies. As Visa will drive out smaller players out of the marketplace.

Now that Visa is directly competing for revenue with Payment Networks, Acquirers and Banks the loser will be Consumers and Merchants. As competition is reduced and Visa leverages its brand, prices and consolidation will drive up costs. Already Visa is eating into debit processing revenues of Star, NYCE, and Pulse EFT.

MasterCard recently cut ATM ISO partner's revenues by two thirds. Any business taking that large a hit in revenue will not be happy. So far the current players in Decoupled Debit are Telecheck the ACH services company of First Data. Blackhawk Network's decoupled debit service has not received the Consumer Adoption they have hoped for. National Paymentcard Association of which I am a minority shareholder has gained some traction in the Fuel and C-Store sector. And Maverick Network Solutions in Deleware selling their "Private Debit" service. Has recently added Wilson Farms to their system.

Now that Pin Debit network pricing is closing the gap with Signature Debit rates. Merchants and Consumers need price relief. Only real competition for Merchant and Consumer's debit business is likely to spur innovation and drive down prices. The Merchants Payment Coalition and their lobbying efforts is giving K Street Lobbyists in Foggybottom aka. Washington D.C. more new clients. But it has as of yet failed to benefit Consumers with lower prices.