Calls on members to contact members of Congress; educate them on its harmful impact on vending industry
CHICAGO, IL -- Oct. 3 -- The National Automatic Merchandising Association (NAMA) today responded to the "Dodd-Frank Financial Reform Legislation," calling on its membership to contact members of Congress and educate them about the harmful impact the legislation will have on the vending industry, NAMA Executive Director and COO Dan Mathews, NCE5, CSS announced today.
The legislation was enacted to bring fundamental changes to the U.S. financial system after the last financial crisis affecting the banking industry, and includes an added "Durbin Amendment" which requires a limit on "swipe fees" that VISA, MasterCard and others can charge for debit card transactions.
In a letter written to the NAMA membership Mathews said, "Effective October 1, 2011 major changes will cut average debit card swipe fees by approximately 45%. Although this will be beneficial for large ticket transactions there is an adverse impact on the vending industry due to our typical "small ticket transactions". This new cap could as much as triple the net "swipe fee" for small transactions." Gateway provider contracts vary from operator to operator therefore the impact on rates will vary.
Mathews went on to say, "Card Companies and banks now have the option to charge up to $.21 per transaction plus an additional .05% of the transaction to mitigate fraud losses and $.01 for fraud protection. The situation is changing every day so contact your provider directly to ask how the new rate caps will impact your business."
In the letter, NAMA also recommended several steps for members to take, writing:
» Immediately contact your Congressional Representative and Senator to educate them on the adverse reaction this will have on your business, your customers and jobs. There are over 10,000 vending companies in the USA serving millions of consumers everyday. Cost increases will have to be passed onto consumers or debit card acceptance will be suspended.
» Ask your provider to negotiate directly with VISA/MC on your behalf.
Mathews outlined several steps the association is taking to protect the industry, saying "We're looking at different options to see how we can lessen or eliminate the adverse impact of the new debit card "swipe fee" cap, and we are also lobbying members of the Small Business Committee in the US House of Representatives. We're also mobilizing a grassroots effort to educate politicians on the adverse and clearly unintended consequences of this new law."
NAMA is also using NAMA "Action Alerts" to communicate to its membership and provide appropriate talking points members can use when speaking with their elected officials. The organization is also directly and indirectly negotiating with VISA/MasterCard.
Concluded Mathews, "Our members can be sure that we'll be taking every step possible to protect them from this heavy new burden imposed on them by this legislation. We'll be in touch to ensure our members are up to date, but be sure to check our new link we're developing on the NAMA website for more up-to-date information."
NAMA is the national trade association of the food and refreshment vending, coffee service and foodservice management industries, including on-site, commissary, catering and mobile. Its membership is comprised of service companies, equipment manufacturers and suppliers of products and services to operating service companies. The basic mission of the association, to collectively advance and promote the automatic merchandising and coffee service industries, still guides NAMA today as it did in 1936, the year of the organization's founding.