The Archives

Everything written by Joshua Gans on law, economics, and more

Interchange fees and other rules

The GAO report raises concerns about card association the level of interchange fees (that acquirers pay issuers for credit card transactions processed) but also about other card association rules such as the ‘no surcharge rule.’ That rule prevents a merchant who accepts card transactions from charging a ‘point of sale’ premium to consumers who use ... Interchange fees and other rules

What happened in Australia?

Joshua Gans is the foundation Professor of Management (Information Economics) at the Melbourne Business School, University of Melbourne. What happens when you take a key price in an industry and cut it in half? For normal markets economists would expect that this would have a dramatic effect on quantity. That, however, was not the experience ... What happened in Australia?