Interchange fees with cashless stores, cashless consumers, and cash-only consumers

C-Tier
Journal: Economics Letters
Year: 2022
Volume: 212
Issue: C

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I analyze interchange fees in the presence of cashless stores, cashless consumers, and cash-only consumers. In these cases, some transactions cannot be completed due to a mismatch between the payment methods that a merchant can or is willing to accept and the methods available to the consumer. The gap between the interchange fees set by card organizations and the optimal fee increases with the fraction of cashless consumers and cashless stores. Some transactions cannot be completed under any interchange fee.

Technical Details

RePEc Handle
repec:eee:ecolet:v:212:y:2022:i:c:s0165176522000088
Journal Field
General
Author Count
1
Added to Database
2026-01-29