U.S. Debit Cards: At a Crossroads?
With the dramatic growth in debit transactions during the 2000s, debit interchange has risen to a prominent position in the payments environment. The more recent decrease in credit card volumes has exacerbated the importance of debit, culminating in the Durbin Amendment. The ultimate impact of its provisions will not be certain until mid-2011, as surveys are conducted, commentary solicited, and rules governing card usage and transaction flows are drafted.
In this Strategic Commentary entitled “U.S. Debit Cards: At a Crossroads?” Speer & Associates, Inc. (S&A) examines the underlying issues that are instrumental in the debit card payments environment, focusing on the diverse positions of key industry participants, including card issuers, acquirers, processors, ISOs, and merchants of all sizes. While these players may not always concur on solutions or directions, most are in agreement that change is imminent and must be confronted before events dictate strategies.
