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 . . .
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 . . .
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 . . .
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 . . .
The GAO has a fairly extensive discussion of the costs and benefits of credit cards to merchants. However, that discussion focuses on the individual benefits. . . .
I feel that at least two important issues are being left out of the raging controversy over the cost of interchange. (At this point my . . .
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 . . .
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 . . .
In my first post I argued that consumers as a group would likely be made worse off as a result of artificially imposed reductions in interchange fees. . . .
There is nothing like the provocative post from Allan Shampine to move this debate up a notch. First, I did not say that the debate . . .