Credit CARD Act: Processing Impact

Changes brought on by the 2009 Credit CARD (Card Accountability Responsibility and Disclosure) Act may significantly impact you, the merchant.

As part of the new law, consumers who attempt to pay for transactions and hit their credit limit will have their payment card declined at the point of sale. The only time they won’t be declined is if they have already requested a higher line of credit or have enrolled/opted into overdraft protection.

This took effect February 22nd for credit cards and will go into effect for debit/ check cards in July. Consumers may blame you, the retailer, but in actuality the credit card issuers and banks are responsible for authorizations. Looks like the days of banks extending the courtesy of “floating” a purchase for their cardholders are over.

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