• Title of article

    Optimalpricingofpaymentservices$

  • Author/Authors

    Cyril Monnet، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2008
  • Pages
    13
  • From page
    1428
  • To page
    1440
  • Abstract
    Paymentsareincreasinglybeingmadewithpaymentcardsdespitethefactthatthecost of clearingacardpaymentusuallyexceedsthecostoftransferringcash.Weexamine thispuzzlethroughthelensofmonetarytheory.Weconsiderthedesignofanoptimal card-based paymentsystemwhencashisavailableasanalternativemeansofpayment. Wefindthatafeatureakintothecontroversial‘‘no-surchargerule’’maybenecessaryto ensuretheviabilityofthecardpaymentsystem.Thisrulestatesthatmerchantscannot chargeacustomerwhopaysbycardmorethanacustomerwhopaysbycash.
  • Keywords
    PaymentCredit cardDebit cardNo-surcharge
  • Journal title
    Journal of Monetary Economics
  • Serial Year
    2008
  • Journal title
    Journal of Monetary Economics
  • Record number

    846260