Debit Card Interchange Fees Generally Lead to Cash-promoting Cross-subsidisation
نویسندگان
چکیده
منابع مشابه
Credit card interchange fees ∗
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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Credit and especially debit card transactions are on the rise worldwide. Interchange fees are an integral part of the pricing structure of credit and debit card transactions. Indirectly paid by merchants to card issuers, interchange fees in most countries are set by credit and debit card networks. But in one country, Australia, the central bank is regulating interchange fees, and in several oth...
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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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RFID Radio-Frequency IDentification is one of the technologies that is used for the past few decades for tracking and identification of an object. RFID tag contains unique information wirelessly with computer databases and network for tracking the objects easily. Prior to performing the read/write operation on RFID card, the reader has to make an authentication check. Usually a default key supp...
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ژورنال
عنوان ژورنال: European Competition Journal
سال: 2011
ISSN: 1744-1056
DOI: 10.5235/174410511798716657