An Empirical Analysis of Payment Card Pricing in China

نویسندگان

  • Chun-Yu Ho
  • Li Xu
چکیده

We exploit a unique merchant-level dataset from the monopoly payment card network in China to study payment card pricing. We develop hypotheses associating payment card pricing to card penetration rate, profitability and fraud risk. Our empirical analysis uses the variations in those three factors across industries to show that the card network charges a higher merchant discount for industries with lower card penetration rate, higher profitability and higher fraud risk. Moreover, we find that the card network provides quantity discounting to merchants.

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تاریخ انتشار 2012