Allocating the Costs of Fraud
I take to heart Jim’s claim that fraud is too-little discussed in this realm given its cost, and thus I’ll try my hand at it. . . .
Allocating the Costs of Fraud
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 . . .
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 . . .
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 . . .
Assessing the Social Effects of the Use of Credit Cards
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. . . .
The Cost of Payments Interchange: Issues No One Talks About
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 . . .
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 . . .
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 . . .
The Merchants’ Insincere Concern About Cross-Consumer Subsidies
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. . . .