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The impact of price controls in two-sided markets : evidence from US debit card interchange fee regulation

Manuszak, Mark D.; Wozniak, Krzysztof - 2017

We study the pricing of deposit accounts following a regulation that capped debit card interchange fees in the United States and provide the first empirical investigation of the link between interchange fees and granular deposit account prices. This link is broadly predicted by the theoretical...

Persistent link: https://www.econbiz.de/10011710091

The Impact of the Interchange Fee Regulation on Merchants : Evidence from Italy

Ardizzi, Guerino - 2018

Interchange fees (IF) are fees that a cardholder's bank (issuer) receives from the merchant's bank (acquirer) when a card payment is executed. Interchange fees are an important part of the fees charged to merchants by acquirers. Because of their level and fragmentation, interchange fees can...

Persistent link: https://www.econbiz.de/10012914941

Competition and Payment Card Interchange Fees : A Brief Note to the OECD Latin American and Caribbean Competition Forum

Abrantes-Metz, Rosa M. - 2021

other side’s price and potentially giving rise to more or new charges). Have we really thought through all implications of …

Persistent link: https://www.econbiz.de/10013324411

Gates, fees, and preemptive runs

Cipriani, Marco; Martin, Antoine; McCabe, Patrick E.; … - 2014

We build a model of a financial intermediary, in the tradition of Diamond and Dybvig (1983), and show that allowing the intermediary to impose redemption fees or gates in a crisis - a form of suspension of convertibility - can lead to preemptive runs. In our model, a fraction of investors...

Persistent link: https://www.econbiz.de/10010393213

Excessive Competition for Headline Prices

Inderst, Roman - 2016

When firms' shrouding of charges, as in Gabaix and Laibson (2006), meets with consumers' salient thinking, as in … quality beyond what would be cost efficient. As more intense shopping leads to a greater “pass through” of shrouded charges … policy. While in our model all consumers are potential victims of salient thinking and shrouded charges, salient thinking …

Persistent link: https://www.econbiz.de/10012992314

Numbers Game : The True Cost of Credit Card Mail Offers

Frank, Joshua M. - 2012

Credit card offers have grown increasingly complex over time. Using a straightforward measure of complexity — the total number of numeric figures that appear on a credit card direct mail offer's Schumer Box — this research studies changes in card offer complexity. The general structure and...

Persistent link: https://www.econbiz.de/10013111129

Optimal Payment Cards' Fees : A Credit-Debit Comparison

Eilat, Assaf - 2011

Credit card rebates, which are paid to all credit card users regardless of borrowing, have grown substantially. This paper analyzes the optimal interchange fees in credit cards relative to the interchange fees in debit cards. Compared to debit cards, credit cards raise efficiency by allowing...

Persistent link: https://www.econbiz.de/10013117708

How Do Consumers Avoid Penalty Fees? Evidence From Credit Cards

Gathergood, John - 2019

Using data from multiple card issuers, we show that the most common penalty fee type incurred by credit card holders – late payment fees – declines sharply over the first few months of card life. This phenomenon is wholly due to some consumers adopting automatic payments after a late payment...

Persistent link: https://www.econbiz.de/10012901968

Consumer inattention and bill-shock regulation

Grubb, Michael D. - 2012

For many goods and services, such as cellular-phone service and debit-card transactions, the price of the next unit of service depends on past usage. As a result, consumers who are inattentive to their past usage but are aware of contract terms may remain uncertain about the price of the next...

Persistent link: https://www.econbiz.de/10010195105

The impact of increased credit card usage on costs incurred by merchant establishments in Singapore

Seetharaman, A.; Patwa, Nitin; Niranjan, Indu; Kavuri, … - In: Journal of Asian finance, economics and business : JAFEB 3 (2016) 4, pp. 43-56

Persistent link: https://www.econbiz.de/10011690277