A PYMNTS Company

Interchange Fees: Optimal Regulation

 |  June 12, 2011

Panelists analyze various theories on interchange, focusing in particular on the tourist test.

Thibaud Vergé notes that the tourist test doesn’t work well in all circumstances, but cost-based merchant interchange fees aren’t necessarily the right approach either.

Emilio Calvano produces the punch line that while simple is good, unfortunately, there is neither a simple rule for interchange regulation, nor reason to believe that “simple rule” is better than “no rule.”

Alberto Heimler advocates that the elimination of the interchange fee is an objective to be achieved by antitrust enforcement.

Finally, Juan Delgado examines the payments regulatory environment in his country.

Watch the presentation here.

Download Emilio Calvano’s presentation deck.

Download Albert Heimler’s presentation deck.