Debunking the “Cross-Subsidy” Theory

Debunking the “Cross-Subsidy” Theory

In our earlier post, we observed that the GAO report on interchange got off on the wrong foot when it concluded that interchange fees were . . .

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Competitive Payments

Most of the discussion related to pricing at the point of sale has emphasized the “cross-subsidy” between those that pay with cash and checks and . . .

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The Fee Neutrality Claim

Will reduction in interchange fees help or hurt consumers? Two posts yesterday made the conjecture that a reduction in one category of fees would only . . .

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Interchange fees and other rules

The GAO report raises concerns about card association the level of interchange fees (that acquirers pay issuers for credit card transactions processed) but also about . . .

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Surcharging and Honor-All-Cards

Generally, merchants charge the same price regardless of the type of payment instrument used to make purchases. In many jurisdictions, merchants are not allowed to . . .

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