Interchange fees in card payments

Börestam, Ann; Schmiedel, Heiko

Practice paper

Interchange fees in card payments

Ann Börestam and Heiko Schmiedel

Journal of Payments Strategy & Systems, 6 (1), 50-66 (2012)

https://doi.org/10.69554/ALHB4542

Abstract

The present paper explores issues surrounding multilateral interchange fees (MIFs) in payment card markets from various angles. A constructive dialogue among the stakeholders involved is key in this debate. Transparency and clarity with respect to the real costs and benefits of different payment instruments are indispensable for a modern and harmonised European retail payments market. Interchange fees (if any) should be set at a reasonable level so as to promote overall economic efficiency in compliance with competition rules.JEL code: G21, D43, L13.

Keywords: card payments; retail payment systems; two-sided markets; interchange fees

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Citation

Börestam, Ann and Schmiedel, Heiko (2012, May 1). Interchange fees in card payments. In the Journal of Payments Strategy & Systems, Volume 6, Issue 1. https://doi.org/10.69554/ALHB4542.