Interchange Fees in Various Countries: Developments and Determinants
نویسندگان
چکیده
منابع مشابه
Interchange Fees in Various Countries: Developments and Determinants
Credit and debit cards have become a prominent form of payment throughout the world. The interchange fees associated with these payment instruments have, in some instances, seen considerable change in recent years. In some countries, interchange fees have experienced sharp movements following a period of relative stability. In other countries, they have remained relatively steady, but significa...
متن کاملInterchange Fees in Various Countries: Commentary on Weiner and Wright
Stuart Weiner and Julian Wright should be commended for the efforts they have made to assemble comparative information about interchange fees, no-surcharge rules, and related practices and regulatory issues from various countries. It is clear from their work that much remains hidden from view about interchange fees and vertical restrictions in payments networks. They are, in fact, able to repor...
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A fundamental aspect of any open payment system is the interchange fee that is paid from the merchant’s bank to the cardholder’s bank. Using a model in which there is partial participation by heterogeneous consumers and merchants, this paper characterizes the output maximizing, profit maximizing and welfare maximizing level of such an interchange fee. It examines how the optimal level of the fe...
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We build a model of credit card pricing that explicitly takes into account credit functionality. We show that a monopoly card network always selects an interchange fee that exceeds the level that maximizes consumer surplus. If regulators only care about consumer surplus, a conservative regulatory approach is to cap interchange fees based on retailers’ net avoided costs from not having to provid...
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We consider the implications of platform price discrimination in the context of card platforms. Despite the platform’s ability to price discriminate, we show it will set fees for card usage that are too low, resulting in excessive usage of cards. We show this bias remains even if card fees (or rewards) can be conditioned on each type of retailer that the cardholder transact with. We use our mod...
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ژورنال
عنوان ژورنال: Review of Network Economics
سال: 2005
ISSN: 1446-9022,2194-5993
DOI: 10.2202/1446-9022.1078