Pricing 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

Payment Scale Economies , Competition , and Pricing