This paper examines regulator concerns that cash-paying consumers pay higher retail prices due to so-called ‘negative pricing' of credit cards that emerge when cardholders face few fees but instead receive discounts, rewards and other inducements for using credit cards for transactions. It is...

This paper explores the issue of the multilateral interchange fees from the perspective of the competition law. The multilateral interchange fees are payments for card transactions operated through financial institutions such as Visa and MasterCard. The issue raised by the European Commission is...

We study the effect of government encouraged or mandated interchange fee ceilings on consumer and merchant adoption and usage of payment cards in an economy where card acceptance is far from complete. We believe that we are the first to use bank-level data to study the impact of interchange fee...

This paper examines the impact of the reductions in interchange fees proposed by the the Federal Reserve Board on consumers and small businesses. We find that consumers and small business would face higher retail banking fees and lose valuable services as banks rationally seek to make up as much...