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Card Surcharges and Cash Discounts: Simple Economics and Regulatory Lessons

Helene Bourguignon, Renato Gomes and Jean Tirole

CPI Journal, 2014, vol. 10

Abstract: The role of payment cards in modern economies can hardly be underrated. In 2013, debit and credit card transactions represented roughly half of all consumer payment transactions in Western Europe, and accounted for more than 45% of all payment transactions in the United States. The payment card industry has faced intense antitrust scrutiny on both sides of the Atlantic, partly in response to the merchants’ recurrent complaints about high transaction fees.

Date: 2014
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