Durbin Amendment Benny Card Update
Please disregard if your organization does not participate with the Benny Benefit Card payment option.
The Durbin Amendment (Section 1075) of the Dodd-Frank Wall-Street Reform and Consumer Protection Act and Its Effects on the Benny Card at Advantage Administrators.
We wanted to make you aware of a legislative change that impacts the Benny Benefit Plan. Effective April 1, 2013 a new regulation goes into effect as part of the Dodd-Frank Wall-Street Reform and Consumer Protection Act that requires consumers to be provided with the ability to pay using a PIN (Personal Identification Number) at the point of sale, in addition to the current signature process. Keep in mind, that the use of a PIN is not required for your employees’ using the Benny Benefit Card. Your employees can continue to use their Card as they always have – no change required, simply by swiping their card and providing a signature. This new regulation requires us to make the PIN option available to consumers.
A notice will be sent out later this week to participants via email. We will also make this available through our website www.advantageadmin.com
You may find the Q&A describing this change along with a copy of the Notice to Employees on our web page www.advantageadmin.com under Important News.
If you have any questions regarding this change, please feel free to contact us.
Durbin Amendment and the Benny Benefit Card FAQ
Summary: Effective April 1, 2013 a new regulation goes into effect as part of the Dodd-Frank Wall-Street Reform and Consumer Protection Act that requires consumers to be provided with the ability to pay using a PIN (Personal Identification Number) at the point of sale, in addition to the current signature process.
What is the effective date of this new regulation?
The new regulation goes into effect on April 1, 2013.
What is a PIN network solution or PIN-based transaction?
A-PIN-based transaction does not require a signature. The cardholder’s identify is verified by entering his/her PIN at the point of sale.
Are employees required to use a PIN to access funds in their account?
No, your employees can continue to use their Benny Benefit Card as they always have – no change required, simply by swiping their card and providing a signature.
If employees are prompted to enter a PIN, and they have not yet selected one, or do not wish to use a one, what should they do?
They should let the merchant know that they wish to pay using the signature process. The merchant will be able to direct them accordingly.
How will PINs be made available to my employees?
Your employees will have the option to choose whether or not they receive a PIN. We have developed an interactive voice response (IVR) system that allows your employees to self-select a PIN via by calling 1-866-898-9795
When will PINs be available for my employees?
PINs will be available at the end of March.
How do you recommend that I communicate this legislative change to my employees?
We have provided a simple Frequently Asked Question document that you can make available to your employees. Information will also be posted on the consumer portal instructing employees as to how select a PIN should they wish to utilize this new option. We will also email out a communication as well as posted it on our website.
How does the PIN transaction work for my employees?
To use the PIN number, employees will need to choose “Debit” on the keypad when they swipe their card at the point of purchase. They will then be prompted to enter their PIN.
If an employee does not remember his/her PIN, how can it be reset?
Employees can reset their PINs via the same IVR process and toll-free number; they used to create their PIN. This toll-free number is also posted on our consumer portal site.
Will employees be able to receive cash-back or access their accounts via ATM with this new PIN option?
No. PINs will only allow your employees to pay for eligible goods and services at the point-of-sale as they do today. Cash-back and ATM transactions will not be allowed.