Paying for payments: free payments and optimal interchange fees

Research, Preprint OPEN
Korsgaard, Søren;
(2014)
  • Publisher: Frankfurt a. M.: European Central Bank (ECB)
  • Subject: E42 | financial regulation | G21 | payments | G28 | interchange fees | financial regulation, interchange fees, payments
    • ddc: ddc:330
    acm: ComputingMilieux_COMPUTERSANDSOCIETY | ComputingMilieux_PERSONALCOMPUTING | ComputerApplications_COMPUTERSINOTHERSYSTEMS | ComputingMilieux_MANAGEMENTOFCOMPUTINGANDINFORMATIONSYSTEMS

Do consumers and merchants use the most efficient payment instruments? I examine how inter- change fees, which are fees paid from merchants' banks to consumers' banks when card transactions take place, influence the choice between cash and payment cards. I show that whe... View more
  • References (16)
    16 references, page 1 of 2

    Baxter, William (1983), \Bank interchange of transactional paper: Legal perspectives." Journal of Law and Economics, 26, 541{588.

    Bolt, Wilko, Nicole Jonker, and Corry van Renselaar (2010), \Incentives at the counter: An empirical analysis of surcharging card payments and payment behaviour in the netherlands." Journal of Banking and Finance, 34, 1738{1744.

    Borestam, Ann and Heiko Schmiedel (2011), \Interchange fees in card payments." ECB Occasional Paper Series, No. 131, 1{56.

    Borzekowski, Ron, Elizabeth K. Kiser, and Shaista Ahmed (2008), \Consumers' use of debit cards: Patterns, preferences, and price response." Journal of Money, Credit and Banking, 40, 149{172.

    Chakravorti, Sujit (2003), \Theory of credit card networks: A survey of the literature." Review of Network Economics, 2, 50{68.

    Chakravorti, Sujit and Roberto Roson (2006), \Platform competition in two-sided markets: The case of payment networks." Review of Network Economics, 5, 118{142.

    Rochet, Jean-Charles and Jean Tirole (2006), \Two-sided markets: A progress report." The RAND Journal of Economics, 37, 645{667.

    Rochet, Jean-Charles and Jean Tirole (2011), \Must-take cards: Merchant discounts and avoided costs." Journal of the European Economic Association, 9, 462{495.

    Rochet, Jean-Charles and Julian Wright (2010), \Credit card interchange fees." Journal of Banking and Finance, 34, 1788{1797.

    Rysman, Marc (2009), \The economics of two-sided markets." Journal of Economic Perspectives, 23, 125{143.

  • Metrics
Share - Bookmark