EconPapers    
Economics at your fingertips  
 

Card acceptance and surcharging: the role of costs and competition

Nicole Jonker

DNB Working Papers from Netherlands Central Bank, Research Department

Abstract: The payment cards market is a two-sided market. Cost sensitivity of both consumers and merchants for card services influences total demand. Survey data of Dutch merchants shows that costs, and competition affect acceptance as well as surcharging decisions. Merchants who find payment cards expensive are less likely to accept them and more likely to surcharge their customers for using them. Merchants who face any competition accept debit card payments relatively more often than merchants with monopoly power, and they are less likely to surcharge their customers for debit card usage. Intense competition leads to higher credit card acceptance.

Keywords: retail payments; merchants; costs; two-sided markets; competition; pricing; surcharging (search for similar items in EconPapers)
JEL-codes: D23 D40 E41 G20 (search for similar items in EconPapers)
Date: 2011-05
New Economics Papers: this item is included in nep-ban and nep-com
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link)
https://www.dnb.nl/en/binaries/working%20paper%20300_tcm47-254378.pdf (application/pdf)

Related works:
Journal Article: Card Acceptance and Surcharging: the Role of Costs and Competition (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dnb:dnbwpp:300

Access Statistics for this paper

More papers in DNB Working Papers from Netherlands Central Bank, Research Department Contact information at EDIRC.
Bibliographic data for series maintained by Richard Heuver ().

 
Page updated 2020-02-19
Handle: RePEc:dnb:dnbwpp:300