Debit card interchange fees generally lead to cash-promoting cross-subsidisation

  title={Debit card interchange fees generally lead to cash-promoting cross-subsidisation},
  author={Harry Leinonen},
Cards and cash are competing payment instruments at point-of-sale. The twosided market platform theory, based on general benefit assumptions, supports the use of multilateral interchange fees for card payments as a means of promoting the use of cards. However, analysis of the issue from the concrete processing cost viewpoint leads to the opposite conclusion: collection of debit card interchange fees by issuers results in subsidisation of cash and so actually promotes the use of cash instead of… CONTINUE READING


Publications referenced by this paper.
Showing 1-10 of 27 references

Developments in Interchange Fees in the United States and Abroad", Payment System Research Briefing

  • T Bradford
  • Federal Reserve Bank of Kansas City,
  • 2008
Highly Influential
3 Excerpts

Debit card interchange fees generally lead to cashpromoting cross-subsidisation

  • Harry Leinonen
  • p. ISBN 978-952-462-661-3,
  • 2011

Freystätter Financial factors in the boom-bust episode in Finland in the late 1980s and early 1990s

  • 12011 Hanna
  • p. ISBN 978-952-462-654-5,
  • 2011

Melolinna What explains risk premia in crude oil futures

  • 22011 Marko
  • p. ISBN 978-952-462-659-0,
  • 2011

The Reverse-Robin-Hood-Cross-Subsidy Hypothesis: Do Credit Card Systems Tax the Poor and Reward the Rich?

  • S Semeraro
  • Rutgers Law Journal,
  • 2009
1 Excerpt

Efficiency and costs of payments: some new evidence from Finland.

  • K Takala, M Virén
  • Bank of Finland Discussion Paper 11/2008
  • 2008
1 Excerpt

Payment habits and trends in the changing e-landscape 2010+

  • H Leinonen
  • Bank of Finland Expository studies A:111
  • 2008

Priceless? The Social Costs of Credit Card Merchant Restraints", Business, Economics and Regulatory Policy Working Paper Series, Research Paper no 973974

  • A Levitin
  • 2008
2 Excerpts

Must-Take Cards and the Tourist Test, DNB

  • Rochet, J J-C – Tirole
  • Working Paper no
  • 2007
1 Excerpt

Similar Papers

Loading similar papers…