An Economic Analysis of the Determination of Interchange Fees in Payment Card Systems

Jean Rochet and Jean Tirole

Review of Network Economics, 2003, vol. 2, issue 2, 11

Abstract: The paper investigates, in a non-technical fashion, the economic determinants of interchange fees in payment card systems and the potential need for their regulation. Among other things, it demonstrates that the proposal for a cost-based regulation of interchange fees relies on an erroneous, vertically organized, model of the payment card industry.

Date: 2003
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DOI: 10.2202/1446-9022.1019

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