This article surveys the recent theoretical literature on payment cards (focusing on debit and credit cards) and studies this research's possible implications for the current public policy debate over payment card networks and the pricing of their services for both consumers and merchants.Payment systems ; Credit cards

Sujit Chakravorti

Wilko Bolt

English

Research Papers in Economics

A cost–benefit analysis of a twosided card market,” Fundación de las Cajas de Ahorros (FUNCAS), working paper,

A move toward a cashless society: A closer look at payment instrument economics,”

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Association and Dove Consulting,

Bank interchange of transactional paper: Legal and economic perspectives,”

Benefits from a changing payment technology in European banking,”

Big step for Visa may prove bigger for industry; merchants gain more clout; association model fades further,”

Chicken and egg: Competition among intermediation service providers,”

Competing in network industries:

Competing payment schemes,”

Competition in two-sided markets,”

Consumer choice and merchant acceptance of payment media,” De Nederlandsche Bank and Federal Reserve Bank of Chicago, mimeo,

Costs, advantages, and disadvantages of different payment methods,” National Bank of Belgium, report,

Defiant C&A reignites debate on German shopping laws,” Financial Times,

Developments in interchange fees in the United States and abroad,” Payments System Research Briefing, Federal Reserve Bank of Kansas City,

Discounts for cash in retail gasoline marketing,”

Exclusive bankcard profitability study and annual report

Heavily skewed pricing in two-sided markets,”

Incentives at the counter: An empirical analysis of surcharging card payments and payment behavior in the Netherlands,” De Nederlandsche Bank, mimeo,

Interchange fees in various countries: Developments and determinants,”

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Microfoundations of two-sided markets: The payment card example,” Federal Reserve Bank of Kansas City, Payments System Research, working paper,

Monopoly and competition in the supply and exchange of money,”

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Payment systems and interchange fees,”

Payments are no free lunch,”

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Size matters: Economies of scale in European payments processing,”

Study regarding the effects of the abolition of the nondiscrimination rule in Sweden,” report,

The antitrust economics of credit card networks,”

The Cash Discount Act,”

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The determinants of optimal interchange fees in payment systems,”

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The framing hypothesis: Is it supported by credit card issuer opposition to a surcharge on a cash price?,”

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Visa plans restructuring, sees IPO

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Economics of payment cards: a status report

http://www.chicagofed.org/digital_assets/publications/economic_perspectives/2008/ep_4qtr2008_part2_bolt_etal.pdf

Economics of payment cards: a status report

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Research Papers in Economics