Banks predicted to loose $5 Billion in revenue

Posted on June 28, 2010 by Tom Mahoney

Debit card issuers are projecting a $5 Billion loss in revenue with the new laws expected to pass this week. Do you wonder who will make up those losses? Nobody seems to be saying but you can bet they’ll find a way and we shouldn’t be surprised if it isn’t the cardholder. That leaves the merchant holding the (money) bag again.

Never forget that the merchant is the path of least resistance because of the contractual relationship with the Association. Recent laws have made it tougher for the banks to stab us in the back but they still hold the knife.

A good analysis of what’s going on can be found here.

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About Tom Mahoney

Tom Mahoney is the Founder and Director of Merchant911, a site dedicated to helping e-commerce merchants.
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Frank

I am not waiting for these thieves to be regulated. I have been steering as many of my customers to use Google and PayPal. Anytime there is a promotion, I use it. Every caller gets told to use Google or PayPal. and when we re-write the website, we are going o have a no restocking fee return policy for those who use PayPal or Google. Screw these da*n banks and their thieving processors.

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  1. Tweets that mention Banks predicted to loose $5 Billion in revenue | Credit Card Fraud Prevention for Merchants -- Topsy.com says:
    June 28, 2010 at 11:10 AM

    [...] This post was mentioned on Twitter by Tom Mahoney and Joan Miller, Tom Mahoney. Tom Mahoney said: Banks predicted to loose $5 Billion in revenue: Debit card issuers are projecting a $5 Billion loss in rev… http://bit.ly/a8DWxf [...]