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The Economics of Payment Cards

Marc Rysman

Boston University - Department of Economics

Julian Wright

National University of Singapore (NUS) - Department of Economics

November 29, 2012

This paper provides a snapshot of the state of the literature on payment cards, particularly from the perspective of interchange fees and the economics literature on two-sided markets. The paper aims to integrate a wide range of theoretical papers with the relevant empirical research and important policy questions. We address not only the accomplishments of the research so far, but also the most important limitations in the existing theory and gaps where future research should be directed, as well as what are the important empirical questions that can be potentially answered with the right data. In so doing, we point to directions for new theoretical and empirical work to bridge the gap between economics and policy.

Number of Pages in PDF File: 42

Keywords: Payments, Interchange Fees, Surcharging

JEL Classification: L1, L4, K21

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Date posted: December 2, 2012  

Suggested Citation

Rysman, Marc and Wright, Julian, The Economics of Payment Cards (November 29, 2012). Available at SSRN: http://ssrn.com/abstract=2183420 or http://dx.doi.org/10.2139/ssrn.2183420

Contact Information

Marc Rysman
Boston University - Department of Economics ( email )
270 Bay State Road
Boston, MA 02215
United States
617-353-3086 (Phone)
617-353-4449 (Fax)
Julian Wright (Contact Author)
National University of Singapore (NUS) - Department of Economics ( email )
AS2 Level 6, 1 Arts Link
Singapore 117570
6568743941 (Phone)
6567752646 (Fax)
HOME PAGE: http://profile.nus.edu.sg/fass/ecsjkdw/
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References:  5
Citations:  1
Footnotes:  37

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