What is the value of pinless debit in a post Dodd-Frank / Durbin Amendment environment? It’s too soon to tell. The intracacies of debit fees are still being worked out. Even though there is a debit fee limit on what non-exempt card issuing financial institutions can collect, there are many details still being worked out.
Merchants have yet to see the final impact on what their merchant processor will charge them, and what interchange and debit network fees for exempt card issuing banks will be. Additionally, the new federal legislation is still lin flux. Dodd-Frank created a framework for new regulations to be created. We can expect more regulations to come.
Due to significant pending legislative updates and marketplace changes affecting debit fees, including the Durbin Amendment and interchange updates, we recommend holding off on any business changes for the purpose of acquiring pinless debit until after January 1, 2012. Quite simply, the benefits of pinless debit are too cloudy for the future and merchants would probably be better off investing resources in other areas until more information is known.
If you were thinking of adding pinless debit, what are the most important reasons for you to do so?