Electronic payments industry continues to face hurdles
by. Dan Kramer
In its seventh annual overview of the status of the electronic payments industry, Digital Transactions looks closely at ongoing interchange issues, virtual currencies, EMV, and prepaid cards.
In the November issue cover story, “The 10 Most Pressing Issues in E-Payments,” Digital Transactions’ Jim Daly and John Stewart highlight the biggest hurdles and setbacks e-payments faced in 2013, and may continue to battle in the coming months.
Below is a breakdown of a few of those issues:
• The Interchange War — The enduring interchange battle rages on with court decisions, such as Judge Richard Leon’s July “swipe fee” ruling. Judge Leon stated the Fed wasn’t in accordance with Congress’s intent regarding the Durbin Amendment. The ruling overturned the 21-cent cap on interchange fees. The Fed appealed the ruling.
Increased Regulation — Federal agencies took an interest in e-payments in a big way in 2013. From cracking down on Independent Sales Organizations (ISOs) and prepaid program managers, to working toward eliminating specific payment methods for telemarketing transactions, the payments business is feeling regulatory pressures left and right.
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