Payment Cards

The Economics of Payment Cards

This paper surveys the economics literature on payment cards, focusing on the role of interchange fees, merchant internalization, surcharging and two-sided markets. The paper aims to integrate a wide range of theoretical papers with the relevant empirical research and important policy questions. We address not only the accomplishments of the research so far, but also the most important limitati...

The Economics of Payment Cards*

This paper surveys the economics literature on payment cards, focusing on the role of interchange fees, merchant internalization, surcharging and two-sided markets. The paper aims to integrate a wide range of theoretical papers with the relevant empirical research and important policy questions. We address not only the accomplishments of the research so far, but also the most important limitati...

Economics of Payment Cards: A Status Report

In this article, we survey the recent theoretical literature on payment cards and study their implications for public policy. Payment card networks have faced regulatory scrutiny in several countries regarding the setting of various fees including interchange fees—fees paid by the merchant’s financial institution to the cardholder’s financial institution. In addition, other common payment pract...

Payment Cards and Money Demand in Belgium

Enhancing the Non-Repudiation Properties of EMV Payment Cards

Although the vast majority of EMV payments are processed without a hitch, there are occasions when the cardholder later repudiates a payment. The cardholder may be adamant that he or she was not present to authorize the transaction, but the issuing bank considers the transaction data and certificate to evidence otherwise because they show that the chip and PIN mechanism had been used to authent...