In this article we empirically analyze how the Tourist Test methodology affects the level of multilateral interchange fees (MIFs) for debit card payments over time. Using Dutch cost data for 2002 and 2009 we argue that this method leads to rising cost for merchants in the long run. The outcomes...

Related links: http://www.richmondfed.org/publications/research/region_focus/2011/q2/policy_update_weblinks.cfm

Since their introduction in the USA in 2002, contactless card payment systems have been widely regarded as the pinnacle of current retail banking technology. However, the potential demand and usage of this innovation has hitherto received little attention from the academic community. Ours is one...

This departmental paper discusses the evolving prudential frameworks for nonbank issuers of electronic money. Some jurisdictions take a relatively light-touch approach to regulating electronic money issuers (EMIs). Others have sought to apply more stringent requirements to protect electronic...

The Center co-sponsored this conference with the Community Affairs Department and the Electronic Funds Transfer Association’s EBT Industry Council. The purpose of the conference was to provide a forum for community, banking, and payment industry leaders on the future of EBT. The sessions...

Purpose – This paper aims to discuss the prevention of complacency regarding payment card fraud, particularly the debit card. Design/methodology/approach – Based on research already carried out on payment card fraud in France, Spain and the UK, the paper extends the analysis of fraud to the...

The U.S. payments system has entered a new era — one that is witnessing a marked decline in the use of paper checks and a sharp increase in the use of electronic payments.