CNP Merchants Not Expected to Sink Potential Durbin Savings into Payment System Upgrades

March 17, 2011

A survey of leading card-not-present merchants found 47 percent felt they would need to update recurring payment processes due to the expected decrease in debit card approvals that would result if the Federal Reserve’s proposed rule to implement the Durbin Amendment is passed in its current form. The study, by CNP industry trade group Direct Response Forum (DRF), indicated only 8 percent felt that fees saved from debit card interchange would be diverted to pay for the needed payment systems development. The survey also reported that 58 percent of respondents currently do not accept mobile payments and have no plans for mobile payments in 2011. “While mobile payments continue to garner a lot of press only 30 percent of the merchants we surveyed indicated they would be implementing a mobile strategy in 2011,” said Chantal Gaspie, DRF executive chair. “This compares to over 60 percent that have a social networking strategy that will impact payments.”