Pub. 5 2010-2011

www.nebankers.org 20 Extraordinary Service for Extraordinary Members. In addition to regulating fees, the new law also affects relationships with parties that accept cards. Within one year of enactment, the Federal Reserve must promulgate regulations prohibiting issuers or card networks from (1) restricting processing of debit card transactions to an exclusive network or (2) inhibiting a merchant or other person who accepts debit cards from routing transactions over any payment network. To implement this nonexclu- sive-network requirement, the regulations probably will have to require issuers to enter into agreements with at least one additional PIN debit network, if not more. For some issuers, it even could necessitate issuance of new cards to all of a bank’s customers. Furthermore, within one year of enactment, the Federal Reserve must promulgate regulations prohibiting card net- works from: • Inhibiting the ability of any person to set aminimumdollar value for acceptance of credit cards, provided theminimum does not differentiate between card networks or exceed $10; • Inhibiting any federal agency or institution of higher educa- tion from establishing a maximum dollar value for credit card acceptance; and, • Inhibiting any person who accepts debit cards fromprovid- ing discounts or in-kind incentives for payment by cash, check, or debit or credit cards, provided such discounts or incentives do not differentiate on the basis of the issuer or network. However, a merchant can only decrease a price charged and cannot increase prices charged in connection with use of a card for payment. These restrictions will apply to all cards, including those issued pursuant to the Small Issuer Exemption, the Gov- ernment Program Exemption, and the Reloadable Prepaid Exemption. To the extent merchants take advantage of these options, they will discourage card usage by customers and increase the cost to banks of providing card services. The Consumer Financial Protection Bureau The second major impact on community banks’ bottom lines will be the multitude of new regulations with which banks must comply. In short, the alphabet soup is about to get a whole lot soupier. Although bank regulators blew past Regulation Z a long time ago, the Dodd-Frank Act has the potential to give fi- nancial institutions a second alphabet worth of regulations. For many of the new rules, the source will be the new Con- Q Financial Reform Grand Island, NE 68802 P: 308-381-1423 TF: 888-603-1423 generalcollection.com We help banks recover debt in a professional and ethical manner. Success comes through adherence to industry standards, and empathy for the debtor’s situation. We help banks recover overdrawn checking accounts, lines of credit, and credit card debts. Our approach preserves the dignity of the debtor, which protects your hard-earned reputation within the community. Full online account access and security-protected statements Monthly remittances direct deposited Complete skip-tracing services ATM Sales, Service, Parts and Supplies New ATM sales for: GRG, Inc. Triton, Inc. Wincor-Nixdorf Nautilus/ Hyosung Tranax, Inc. Lobby Model Triton RL2000 Locally Owned and Operated Island Model GRG, Inc. H46N ServingWestern Iowa, Eastern and Central Nebraska and Northern Kansas since 1996 402.733.7768 s timm@pesatms.com www.pesatms.com