The Durbin Amendment of the Dodd-Frank Act: Debit Card Payments

The Morning Consult has conducted a national survey with the correspondent of over the summation of 1,999 registered voters, residing in the United States of America right from the 13th of October this year, and came up with the data that outrageously tells that there are more than six out of ten consumers that probably wanted to revoke of the merchant markup in which was fully known as the Durbin Amendment of the Dodd-Frank Act.

As a fraction coming from the 2010 Dodd-Frank Act, in which was the Durbin Amendment a lesser debit card interchange cost of fees, in which charges that particular stores to pay the banks every single moment that a customer uses their debit card to pay or to make a purchase in which may probably cost the consumers as an estimated amount worth of $4 billion, annually.

Based with the Federal Reserve that a transaction involves the five main parties in which were the consumer, the consumer’s bank in which pertains with the issuer, the merchant, the merchant’s bank in which pertains with the acquirer, and lastly, the card network. The card provider bank offers the card reader technology and also the processing activities right to the merchant. And the network creates the policies right for the card transactions and therefore coordinates the transmission of the information and the funds between the two banks.

Right in the debit transaction, the interchange cost of fees was being paid by the acquirer to the issuer and it is commonly deducted right from the amount transferred from the issuer to the acquirer upon settling. The interchange cost of fee schedules are being scheduled are being set by the network that carries transactions in particularly with the Visa, MasterCard, or even one of the PIN debit networks. As prior to the Federal Reserve Board in which was issued-Reg. II in the year 2011, June to be able to fully implement the Durbin Amendment, the interchange cost of fees were being set at the amount of $0.48. Right then, the Board clarifies that, “Under the supervision of the regulation that was imposed on the 11th of October year 2011, the interchange cost of fees right for the issuer together with their assets being greater the summation of over the amount of $10 billion were capped at the total amount of 21 cents plus the 0.05% of the transaction value. It is totally reflecting a provision of the bill, and Reg II further permits the covered issuers to be able to receive a 1 cent adjustment right for the fraud prevention costs. And together with the interchange cost of fee cap and the fraud-prevention adjustment entailed a maximum interchange fee of 24 cents for the summation of $38 debit card transaction in which is a decline of a 45% right from its average value of 44 cents for the very exact and the same transaction in the year 2009 as prior with the Durbin Amendment of the Federal Reserve Board 2011b.”

Uber Launches Its Signature Debit Card in Latin America

Uber, which is a $68 billion transportation network and technology company, has launched its signature debit card network right in Latin America, in the cooperation with the FinTech bank, Bankaool.

As the Francisco Mere, the CEO of Bankaool stated that, “This reflects how the FinTech together with an open IT architecture can work together as one with the IT companies, and showcasing innovative and also disruptive solutions right to an increasing number of markets,”

Bankaool is a Latin American online FinTech bank that serves the populace varieties of financial services in which includes the MasterCard debit card issuance. The firm’s mainly focal point was regarding right on the mobile banking in which enables its consumers to be able to take control virtually at every single financial settlement and tasks online via their mobile phones and electronic gadgets. And the Uber signature debit card, for instance, can be beyond doubt accessed internationally utilizing the web or mobile. Similarly to the traditional bank-issued debit cards, the consumers can use it to purchase through online, make their free transfers and also manage their balances right on the Bankaool mobile application.

Right from a regular consumer standpoint, it appears as if a multi-billion dollar institution like the Uber would rather form a joint venture together with the issuing party such as the MasterCard, instead of the third party companies like the Bankaool. On the other hand, right in the part of the consideration of the Latin America mobile ecosystem and also of the financial market, the Uber has made a sophisticated one-of-a-kind FinTech movement.

And for over the past decade, the mobile ecosystem right in Latin America has significantly grown and developed and illustrating an astounding 112 percentage in the summation of its penetration rate right in the mobile connections and the 52 percentage coming from its penetration rate right in the unique monthly subscribers. As according to the GSM Association in which are the 3G/4G connections are being projected to cultivate by almost of 80 percent by the very end of the year 2020 in which represents the rapidly growing connectivity rate in the midst of Latin American mobile users.

In spite of Latin America’s developed mobile ecosystem, it has an underdeveloped financial market in which with less than 14 percent of the population is having their formal savings account. I most cases, it is particularly way complicated to be able to open debit or credit cards without having a formal savings account. As the banks demand a consistent in and outflow of money right in their bank accounts and also acquires the individuals to hold on a certain amount of money right in their accounts just before opening bank-issued credit cards.

For Uber, the debit and credit card penetration rate is way too crucial as the entire platform is based right on the two-way payment selections. Without debit and credit cards, the users cannot be able to use Uber to travel around. Right in the countries like the Philippines, where obtaining a debit or credit card is drastically difficult, an increasing number of the people are passing up the chance and opportunity to use Uber because there is a lack of the financial services. If such regions can be able to obtain debit cards right from a major financial network similarly to the MasterCard, a bigger market will be available for Uber to target.

The Chief of the Digital Bank, Business Development and Marketing Officer of the Bankaool, Juan Carlos Espinosa has said that, “#YourUberCardforEverything (#TuTarjetaUberParaTodo) can be utilized to be able to pay at the movie theaters, stores or even restaurants, as well as the e-commerce and the mobile apps that accept MasterCard and both tight in Mexico and internationally. And even to be able to withdraw cash at the ATMs.”

A Dream of a Cashless Society in India

How do you take hew right into one of the rapidly growing economies in the world? It is quite easy and yet simple, just remove the 86% of the circulating currency and call it an anti-corruption precaution. As Prime Minister Modi of India and his subordinate, Urjit Patel, the Governor of the Reserve Bank of India, appears to have gone right ahead and just done that. And at this very moment, that you do not have any circulating cash, right then, you have a cashless economy. Then we must all say that “Welcome to the fearless and new face of India.”

The Indians are noticing that without their familiar 500 Rupees and 1000 Rupees of banknotes that made up closely to the 86% of all circulating cash, their life is very thorny. The middle class and the upper class of Indians have now taken right into debit cards and credit cards. The India’s Hindu Business Line Newspaper had reported that there has been a surge in which garners at the 65% right in the transactions of the less than 500 Rupees in which that made all the way through the debit and credit cards and the post has been published on 8th of November, this year of 2016. As it stated that, “The overall usage of the debit cards has gone viral and up in 70% and the credit card was up by 40% in which suggests a marvelous jump right in the first-time users.” The part of this particular surge can be attached together with that fact that the government has waived off the charges that are commonly linked right with these form of cashless transactions.

The post-demonetization muddle has been beneficial to one company in which pertains to the PayTM in which is a wallet operator that is funded by China’s Alibaba Group. And a day after the demonetization was declared, the wallet provider has taken out the full page of advertisements right in the major Indian newspaper in which giving thanks to Prime Minister Modi together with the advertisement’s that featured an enormous image of the bearded Prime Minister. Paradoxically, the PayTM has been caught up right in a controversy as the India is waging a war on the Chinese goods. The Diwali Festival in which was celebrated all over and across India had made Indians shunning goods and the made in China as the India’s northern neighbor keeping on to the side of Pakistan right over the variety of issues in which includes the Himalayan clash in Jammu and Kashmir.

The first post has recently sheltered on how the Alibaba Group and its affiliate Ant Financial have backed up the PayTM with funding to the tune of $680 million. The very same story had the PayTM’s Founder and Chief Executive Vijay Shekhar Sharma defended his enterprise in stating that, “We are as Indian as Maruti is… We are the India story in every single sense and whatsoever.” Vijay Shekhar Sharma was referring right into the Maruti-Suzuki which is the manufacturer of the India’s iconic Maruti cars that are omnipresent right on the nation’s roadways.

In India, Debit Card Users Are In Colossal Risk!

The banks are perceived are the safest at the significant number of people. The common public is wary of the risky investments and tends to gravitate further towards the familiar and what could be more familiar than the neighborhood bank together with a cash machine sticking out of the wall? And the month of October has brought a quite shocking news right for the Indian debit and credit card users as more than the summation of over 3.2 million debit cards are now known to have been compromised. Indeed it said that card compromised has been recorded as the massive breach of the security right in the Indian banking system. The largest Indian bank in which is the Bank of India has been the very worst hit with the summation of more than 600,000 debit cards has been quite affected.

The Indian banking is reeling right from the cyber attack! And it has been reported by the Indian Express newspapers that there are 19 banks have had their complaints right from their customers that their cards were used abroad while they were exactly in India. These cards were mostly used to access funds in the locations in China and the United States of America. The Additional Secretary of Financial Services, Government of India GC Murmu told that the Indian Express have compromised for over 0.5% of total debit cards in the entire country. And a person that is being involved right in the investigation of the debit card scam told right in the Business Standard newspaper that, “One of the processors of the Hitachi Payments’ central switch had been severely attacked and the malware has been deployed onto it switch and was active for the summation of six weeks. The data of all the transactions had passed all the way through the switch and had been possibly compromised. This indeed occurred at the YES Bank, the White Label Operator ATM (WLA) and also to a Korean bank ATM.”

The question that lingers was how the debit cards were being compromised? The National Payments Corporation of India in which is the NPCI had further explained in a press release happened on the 20th of October in this same year, how the scam has unfolded. The banks had made their complaints that their customer’s cards were being fraudulently used in various locations such as China and the United Stated of America and also feared that there had been a compromise of card data. There are three significant payments processors right in India in which was the MasterCard, Visa and also the RuPay starting onto the collaboration on this issue in the September of 2016. The investigations have revealed that the frauds were due to a probable compromise at a payment switch provider’s system.


The further analysis has revealed that the feasible card numbers that may have been compromised. The RuPay cardholders have not complained, but as of now it is not that possible to use a RuPay card outside of India. Also the NPCI states that the fraudulent withdrawals are limited to cards of the 19 banks and also possibly the summation of over 641 customers and the total summation amount being involved in 13 million Rupees.

How Bitcoin Can End Up With eBay?

Although eBay does not accept Bitcoin unswervingly as a form of payment, and it is mutually developed integration together with the BigCommerce may be able to expose of over and around the summation of 165 million of its active buyers to the apex digital currency.

The two companies stated that the accessibility of the new integration has already took place last 11th of November, this year of 2016, Thursday as a means to be able to allow the BigCommerce merchants to choose products right from their catalog and begin selling right into the millions of the eBay users without the need right for the third party apps or even a custom development. The BigCommerce merchants that choose to sell right on the marketplace can possibly take advantage of its centralized inventory management and also ordering processing in which will enable the merchants to be able to sell the exact and also the same products and inventory simultaneously all across both eBay and their branded website, while flawlessly syncing the stock levels right on the both sides.

It merges its open architecture and the app ecosystem right for businesses to be able to scale to millions right in the online sales for the cheaper price and complexity of on-premise software. Its customers include for over the summation of 50,000 small and medium businesses and more than over 2,000 mid-market business that is selling for more than $1 million per year and 10 Fortune, 1000 companies, and 17 Internet Retailer and also 1000 businesses. As according from Brent Bellm the CEO of the BigCommerce that the integration will allow the retailers to be able to sell to a vast eBay community right from a single platform unified together with their branded websites and allocating the retailers to be capable of maximizing their online sales while at the same time minimizing their technical and operational density.

The merchants can also have a hasty bulk listing and central management and creating hundreds of the eBay listings within just minutes utilizing customizable templates by automatically mapping the products right into various categories. And they can also tailor their listings by identifying channel-specific characteristics and pricing, while at the same moment using a typical product catalog, and facilitate a scalable architecture right for more reliable and more rapidly be syncing. Right with the announcement of the BigCommerce becomes the only e-commerce platform to natively prop up selling all across and over the world’s two biggest marketplaces and leading social platforms in which includes Facebook and Pinterest.

As the Bitcoin keeps on becoming an increasingly popular form of payment, the BigCommerce has also been promoting the digital currency as a comparatively secure means of payments right for the products. And the world’s leading cloud e-commerce platform fan an established and swiftly growing businesses and also states that right in a post to its particular community that it persuades the merchant to acknowledge payments their customers can utilize, even if it is credit, debit, PayPal, Apple Pay, Bitcoin or any other of the future form of payments that becomes pertinent.

And creating the Bitcoin link right between the BigCommerce and eBay also comes together with the use of Stripe in which is a payment gateway that was currently integrated right with BigCommerce platform and has supported different countries such as the United States of America, Canada, United Kingdom, Ireland, Australia, Belgium, France, Germany, Luxembourg, Netherlands, Spain and also Italy. The Stripe’s API supports the Bitcoin payments right in the exact and the very same way as the credit card payments. And also several users can be able to start on accepting the Bitcoin payments without needing to make changes right to their server-side integration.

Your session is about to expire. Please select an action or you will be automatically logged out in 5:00

Continue browsing or Logout