Download or read book Regulation of Debit Interchange Fees written by Darryl E. Getter and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This report provides a description of the debit payments process and network pricing, as well as an overview of the effects of the Durbin Amendement implemented by the Federal Reserve which includes a cap on the interchange fee for large issuers. In particular, the Durbin Amendment is discussed in light of comments by Federal Reserve Board Chairman Ben Bernanke.
Download or read book Debit Card Interchange Fees and Routing Us Federal Reserve System Regulation Frs 2018 Edition written by The Law The Law Library and published by Createspace Independent Publishing Platform. This book was released on 2018-10-06 with total page 170 pages. Available in PDF, EPUB and Kindle. Book excerpt: Debit Card Interchange Fees and Routing (US Federal Reserve System Regulation) (FRS) (2018 Edition) The Law Library presents the complete text of the Debit Card Interchange Fees and Routing (US Federal Reserve System Regulation) (FRS) (2018 Edition). Updated as of May 29, 2018 The Board is publishing a final rule, Regulation II, Debit Card Interchange Fees and Routing. This rule implements the provisions of Section 920 of the Electronic Fund Transfer Act, including standards for reasonable and proportional interchange transaction fees for electronic debit transactions, exemptions from the interchange transaction fee limitations, prohibitions on evasion and circumvention, prohibitions on payment card network exclusivity arrangements and routing restrictions for debit card transactions, and reporting requirements for debit card issuers and payment card networks. An interim final rule, with a request for comment, on standards for receiving a fraud-prevention adjustment to interchange transaction fees is published separately in the Federal Register. This book contains: - The complete text of the Debit Card Interchange Fees and Routing (US Federal Reserve System Regulation) (FRS) (2018 Edition) - A table of contents with the page number of each section
Download or read book Regulation of Debit Interchange Fees written by and published by . This book was released on 2011 with total page 7 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Understanding the Federal Reserve s Proposed Rule on Interchange Fees written by United States. Congress. House. Committee on Financial Services. Subcommittee on Financial Institutions and Consumer Credit and published by . This book was released on 2011 with total page 380 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Interchange Fee Economics written by Jakub Górka and published by Springer. This book was released on 2018-11-29 with total page 181 pages. Available in PDF, EPUB and Kindle. Book excerpt: Interchange fees have been the focal point for debate in the card industry, among competition authorities and policy makers, as well as in the economic literature on two-sided markets and on the regulation of market failures. This book offers insight into the economics of interchange fees. First, it explains the nature of two-sided markets/platforms/networks and elaborates on four-party schemes and on the rationale behind interchange fees according to Baxter’s model and its later refinements. It also includes the debate about the optimum level of interchange fees and its determination (“tourist test”), and presents the original framework for assessing the impact of interchange fee regulatory reductions for the market participants: consumers, merchants, acquirers, issuers, and card organisations. The framework addresses three areas of concern in reference to the transmission channels of interchange fee reductions (pass-through) and the card scheme domain (triangle: payment organisation, issuer, acquirer). The book discusses the effects of regulatory interchange fee reductions in Australia, USA, Spain, and, most specifically, Poland. It will be of interest to policy makers, card and payments industry practitioners, academics, and students.
Download or read book Bank Profitability and Debit Card Interchange Regulation written by Benjamin S. Kay and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Impact of the U S Debit Card Interchange Fee Regulation on Consumer Welfare written by David Sparks Evans and published by . This book was released on 2013 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: The cost to merchants of taking payment on debit cards declined by more than 7 billion dollars annually as a result of the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, while the effective cost to issuers of providing debit card services to consumers increased by a corresponding amount. This paper reports an event-study analysis of stock prices to determine the impact on consumers of the Durbin Amendment. Did consumers gain more from cost savings passed on by merchants, in the form of lower prices and better services, than they lost from cost increases passed on by banks, in the form of higher prices or less service? We find that consumers lost more on the bank side than they gained on the merchant side. Our estimate is that, based on the expectations of investors, the present discounted value of the losses for consumers as a result of the implementation of the Durbin Amendment is between 22 and 25 billion dollars.
Download or read book Interchange Fees written by David S. Evans and published by CreateSpace. This book was released on 2011-09-22 with total page 226 pages. Available in PDF, EPUB and Kindle. Book excerpt: Interchange fees have become increasingly controversial. These fees constitute the bulk of the cost that merchants incur for taking cards because most consumers pay with a card from a four-party system that assesses these fees. The total interchange fees paid by merchants have increased dramatically as consumers have switched to electronic payments. Merchants have complained, have filed lawsuits, and have lobbied governments to do something about this. Meanwhile governments around the world have intensified their examination of these fees. For example, the US Congress passed legislation in 2010 that required the Federal Reserve Board to regulate debit card interchange fees; the Reserve Bank of Australia decided to regulate credit card interchange fees in 2002 after concluding that a market failure had resulted in merchants paying fees that were too high; and in 2007 the European Commission ruled that MasterCard's interchange fees violated the EU's antitrust laws. The controversy raises two broad issues. The first relates to how payment card systems decide how much merchants should pay for taking cards either through the interchange fee for four-party systems or the merchant discount for three party systems. The second concerns whether the setting of interchange fees by private businesses results in a market failure and if so what if any regulation should be adopted to correct this market failure. This interchange fee debate helped stimulate a new literature on multi-sided platforms or what are sometimes called two-sided markets. Payment card systems serve as intermediaries between merchants and consumers and operate a platform that enables these two different kinds of customers to interact. It turns out that there are many other businesses that have similar features including software platforms like the iPhone OS, shopping malls, search engines, and exchanges. Economists have developed general models of multi-sided businesses and applied them to payment cards.
Download or read book H R 2382 the Credit Card Interchange Fees Act of 2009 and H R 3639 the Expedited Card Reform for Consumers Act of 2009 written by United States. Congress. House. Committee on Financial Services and published by . This book was released on 2010 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Paying with Plastic second edition written by David S. Evans and published by MIT Press. This book was released on 2004-12-17 with total page 388 pages. Available in PDF, EPUB and Kindle. Book excerpt: The definitive account of the trillion-dollar payment card industry. The payment card business has evolved from its inception in the 1950s as a way to handle payment for expense-account lunches (the Diners Club card) into today's complex, sprawling industry that drives trillions of dollars in transaction volume each year. Paying with Plastic is the definitive source on an industry that has revolutionized the way we borrow and spend. More than a history book, Paying with Plastic delivers an entertaining discussion of the impact of an industry that epitomizes the notion of two-sided markets: those in which two or more customer groups receive value only if all sides are actively engaged. New to this second edition, the two-sided market discussion provides useful insight into the implications of these market dynamics for cardholder rewards, merchant interchange fees, and card acceptance. The authors, both of whom have researched the industry for more than 25 years, also examine the implications of the recent antitrust cases on the industry as well as other business and technological changes—including the massive consolidation brought about by bank mergers, the rise of the debit card, and the emergence of e-commerce—that could alter the payment card industry dramatically in the years to come.
Download or read book Bank Income and Adjustment to Debit Card Interchange Regulation written by Benjamin Kay and published by . This book was released on 2016 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Durbin Amendment to the Dodd-Frank Act yielded regulations that cap debit card interchange fees for banks with over $10 billion in assets. Using a difference-in-differences identification strategy, we document and quantify the resulting decline in interchange income for treated banks. We further find that treated banks offset more than 90% of the lost interchange income through increases in deposit fees for account holders. These results are robust when limiting the sample to banks near the asset threshold or using control banks with low direct competition with treated banks. Treated banks neither reduced costs nor strategically avoided the $10 billion threshold.
Download or read book Credit and Debit Cards written by Office, U.s. Government Accountability and published by . This book was released on 2017-08-16 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Federal entities-agencies, corporations, and others-are growing users of credit and debit cards, as both "merchants" (receiving payments) and purchasers. Federal entities, like other merchants that accept cards, incur fees-called merchant discount fees-to process card transactions. For Visa and MasterCard transactions, a large portion of these fees- referred to as interchange fees-goes to the card-issuing banks. This statement addresses (1) the amounts of revenue that federal entities have collected using credit and debit cards and the costs of such acceptance, (2) these entities' efforts to reduce their interchange fee costs, including negotiations, and (3) the extent to which card network rules affect these entities and other card accepters' ability to reduce interchange fee costs. The information for this statement was drawn from Credit and Debit Cards: Federal Entities Are Taking Actions to Limit Their Interchange Fees, but Additional Revenue Collection Cost Savings May Exist (GAO-08-558) and Credit Cards: Rising Interchange Fees Have Increased Costs for Merchants, but Options for Reducing Fees Pose Challenges (GAO-10-45). GAO analyzed data on accepting and using cards from the Department of the Treasury (Treasury), Amtrak, the Postal Service, and General Services Administration (GSA); and interviewed non-federal merchants...
Download or read book The Impact of the Durbin Amendment on Merchants written by Zhu Wang and published by . This book was released on 2015 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Durbin Amendment to the Dodd-Frank Act introduced a regulation on debit card interchange fees, which went into effect in October 2011. Based on a merchant survey conducted two years after the regulation, we investigate the impact of the regulation on merchants' costs of accepting debit cards. We also examine merchants' reactions to the regulation in terms of changing prices and debit card restrictions.
Download or read book Tourist Test Or Tourist Trap Unintended Consequences of Debit Card Interchange Fee Regulation written by Wilko Bolt and published by . This book was released on 2013 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this article we empirically analyze how the Tourist Test methodology affects the level of multilateral interchange fees (MIFs) for debit card payments over time. Using Dutch cost data for 2002 and 2009 we argue that this method leads to rising cost for merchants in the long run. The outcomes show that MIFs may increase from 0.2% to 0.5% of the transaction amount of an average debit card payment. If card acquirers would pass such an increase on to merchants by raising acquiring fees, merchants will face a considerable rise in operating costs. Our results indicate that an straightforward application of the Tourist Test methodology may not yield a suitable benchmark tool for interchange fee regulation, at least for countries such as the Netherlands with rising costs for cash and declining costs for debit card payments.
Download or read book The Law and Economics of Interchange Fees written by United States. Congress. House. Committee on Energy and Commerce. Subcommittee on Commerce, Trade, and Consumer Protection and published by . This book was released on 2006 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Subcommittee on Investigations and Oversight Hearing on the Impact of Interchange Fees on Small Businesses written by United States. Congress. House. Committee on Small Business. Subcommittee on Investigations and Oversight and published by . This book was released on 2010 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Understanding Marginal Costs in Two Sided Markets written by Bruce Levinson and published by . This book was released on 2015 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper reviews the economic literature's treatment of marginal costs in two-sided markets is discussed below with particular emphasis on literature discussing the payment card market. An underlying issue explored in this paper is the how financial reform legislation's use of the term “incremental costs” compares with the use of the term in the literature and with the definition of marginal cost. Also discussed is the significance of the two-sided market phenomena to efficient pricing decisions, the need to consider costs incurred on both sides of the market, and estimates of the marginal cost to banks of processing debit card payments. The paper will conclude with a summary of five key principles that the Federal Reserve should apply when developing their proposed debit card interchange fee regulation.
