Regulatory Intervention in Card Payment Systems: An Analysis of Regulatory Goals and Impact

2018 ◽  
Author(s):  
Eliana Garces ◽  
Brent Lutes
Keyword(s):  
Payment Systems ◽  
Card Payment ◽  
Regulatory Intervention

scholarly journals Externalities and Regulation in Card Payment Systems

2006 ◽  
Vol 5 (1) ◽  
Author(s):  
Jean-Charles Rochet ◽  
Jean Tirole
Keyword(s):  
Social Welfare ◽  
Consumer Surplus ◽  
Welfare Analysis ◽  
Payment Systems ◽  
Interchange Fees ◽  
Regulatory Approach ◽  
Innovative Thinking ◽  
Card Payment ◽  
Economic Thinking

The paper offers a roadmap to the current economic thinking concerning interchange fees. After describing the fundamental externalities inherent in payment systems and analysing merchant resistance to interchange fee increases and the associations' determination of this fee, it derives the externalities' implications for welfare analysis. It then discusses whether consumer surplus or social welfare is the proper benchmark for regulatory purposes. Finally, it offers a critique of the current regulatory approach, and concludes with a call for more novel and innovative thinking about how to reconcile regulators' concerns and the industry legitimate desire to perform its balancing act.

Assessing Australian Interchange Regulation: Comments on Chang, Evans and Garcia Swartz

2005 ◽  
Vol 4 (4) ◽  
Author(s):  
Joseph Farrell
Keyword(s):  
Payment Systems ◽  
Short Comment ◽  
Regulatory Intervention ◽  
Two Sided Markets

In this short comment, I provide my views on "The Effect of Regulatory Intervention in Two-Sided Markets: An Assessment of Interchange-Fee Capping in Australia" (published in this issue) that was presented at the Antitrust Activity in Card-Based Payment Systems: Causes and Consequences conference.

scholarly journals Transaction Flow in Card Payment Systems Using Mobile Agents

10.28945/1153 ◽  
2010 ◽  
Vol 5 ◽  
pp. 153-166 ◽  
Author(s):  
Olufunke R. Vincent ◽  
Olusegun Folorunso ◽  
Adio Taofiki Akinwale ◽  
Adebayo D. Akinde
Keyword(s):  
Mobile Agents ◽  
Payment Systems ◽  
Card Payment

School lunch debit card payment systems are associated with lower Nutrition and higher calories

Obesity ◽  
2013 ◽  
Vol 22 (1) ◽  
pp. 24-26 ◽  
Author(s):  
David R. Just ◽  
Brian Wansink
Keyword(s):  
School Lunch ◽  
Payment Systems ◽  
Debit Card ◽  
Card Payment

A Simple and Secure Credit Card-Based Payment System

2010 ◽  
pp. 834-842
Author(s):  
Chi Po Cheong
Keyword(s):  
Private Information ◽  
Credit Card ◽  
Financial Institution ◽  
Payment System ◽  
The Internet ◽  
Sensitive Information ◽  
Payment Systems ◽  
Credit Card Number ◽  
Card Number ◽  
Card Payment

Credit card is the most popular payment method used in Internet shopping. The idea of credit card payment is to buy first and pay later. The cardholder can pay at the end of the statement cycle or they can pay interest on the outstanding balance. Therefore, there are many credit card-based electronic payment systems (EPSs) that have been developed to facilitate the purchase of goods and services over the Internet such as CyberCash (VeriSign), iKP (Bellare, Garary, Hauser, et al, 1995), SET (Visa and MasterCard, 1997), CCT (Li & Zhange, 2004), and so forth. Usually a credit card-based EPS involves five parties: cardholder, merchant, acquirer bank, issuer bank, and financial institution. Internet is an open system and the communication path between each other is insecure. All communications are potentially open for an eavesdropper to read and modify as they pass between the communicating endpoints. Therefore, the payment information transmitted between the cardholder and the merchant through Internet is dangerous without a secure path. SSL (Zeus Technology, 2000) is a good example to secure the communication channel. Besides the issue of insecure communication, there are a number of factors that each participant must consider. For example, merchant concerns about whether the credit card or the cardholder is genuine. There is no way to know the consumer is a genuine cardholder. As a result, the merchant is incurring the increase in losses due to cardholder disputes and frauds. On the other hand, cardholders are worried about the theft of the privacy or sensitive information such as the credit card number. They don’t want any unauthorized usage of their credit cards and any modification to the transaction amount by a third party. These security issues have deterred many potential consumers from purchasing online. Existing credit card-based EPSs solve the problems in many different ways. Some of them use cryptography mechanisms to protect private information. However, they are very complicated, expensive, and tedious (Xianhau, Yuen, Ling, & Lim, 2001). Some EPSs use the Certificate Authority (CA) model to fulfill the authentication, integrity, and nonrepudiation security schemes. However, each participant requires a digital certificate during the payment cycle. These certificates are issued by independent CAs but the implementation and maintenance cost of this model is very high. In addition, the validation steps of Certificate-based systems are very time-consuming processes. It requires access to an online certificate server during the payment process. Moreover, the certificate revocation list is a major disadvantage of the PKI-based certification model (The Internet Engineering Task Force). The cardholder’s certificate also includes some private information such as the cardholder’s name. The requirement of a cardholder’s certificate means software such as e-Wallet is required to be installed on the cardholder’s computer. It is the barrier for the cardholder to use Certificatebased payment systems. To solve this problem, Visa Company has developed a new payment system called Verified by Visa (VbV) (http:www/visa-asia.com/ ap/sea/merchants/productstech/vbv_implementvbv. shtml). However, sensitive information such as credit card number is still passed to the merchant. Therefore, the cardholder is not protected by the system.

scholarly journals Market Power and Efficiency in Card Payment Systems: A Comment

2006 ◽  
Vol 5 (1) ◽  
Author(s):  
Luis M. B. Cabral
Keyword(s):  
Market Power ◽  
Payment Systems ◽  
Short Comment ◽  
Card Payment

In this short comment, I provide my views on "Market Power and Efficiency in Card Payment Systems" (published in this issue) that was presented at the Antitrust Activity in Card-Based Payment Systems: Causes and Consequences conference, and more generally on the ideas introduced by Rochet and Tirole's work on payment systems.

Times Have Changed, Don't Lose Business Because of “Sorry We Don't Accept Cards!”

2020 ◽  
pp. 71-87 ◽  
Author(s):  
Silas Verkijika
Keyword(s):  
Value Chain ◽  
Small Businesses ◽  
Structural Equation ◽  
Equation Modeling ◽  
Mobile Payment ◽  
Retail Sector ◽  
Management Support ◽  
Payment Systems ◽  
Using Data ◽  
Card Payment

Over the past decade, many mobile payment systems have been introduced to facilitate the ease with which businesses and customers' process payments. For these mobile payment systems to succeed, merchant acceptance is of utmost importance as merchants play a central in the mobile payment value chain. As such, the main purpose of this chapter is to assess the determinants of merchant acceptance of mobile card payment systems using the technology-organization-environment (TOE) framework. The study made use of structural equation modeling to evaluate the hypothesized association in the proposed model. Using data from 259 small businesses in the South African retail sector, this study found that two technological (i.e., relative advantage and perceived cost), one organizational (i.e., top management support), and two environmental (i.e., competitive pressure and customer pressure) context factors were significant determinants of merchant acceptance of mobile card payment systems. The chapter culminates with a discussion of the implications of the findings.

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