Interchange Fee Economics

To Regulate or Not to Regulate?

  • Jakub Górka

Table of contents

  1. Front Matter
    Pages i-xviii
  2. Jakub Górka
    Pages 1-43
  3. Jakub Górka
    Pages 161-169
  4. Back Matter
    Pages 171-181

About this book


Interchange fees have been the focal point for debate in the card industry, among competition authorities and policy makers, as well as in the economic literature on two-sided markets and on the regulation of market failures. This book offers insight into the economics of interchange fees. First, it explains the nature of two-sided markets/platforms/networks and elaborates on four-party schemes and on the rationale behind interchange fees according to Baxter’s model and its later refinements. It also includes the debate about the optimum level of interchange fees and its determination (“tourist test”),  and presents the original framework for assessing the impact of interchange fee regulatory reductions for the market participants: consumers, merchants, acquirers, issuers, and card organisations. The framework addresses three areas of concern in reference to the transmission channels of interchange fee reductions (pass-through) and the card scheme domain (triangle: payment organisation, issuer, acquirer). The book discusses the effects of regulatory interchange fee reductions in Australia, USA, Spain, and, most specifically, Poland.  It will be of interest to policy makers, card and payments industry practitioners, academics, and students.


Interchange Fees financial economics Baxter’s model two-sided markets financial regulation regulatory interchange fee reductions payment industry

Authors and affiliations

  • Jakub Górka
    • 1
  1. 1.University of WarsawWarsawPoland

Bibliographic information

  • DOI
  • Copyright Information The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG, part of Springer Nature 2018
  • Publisher Name Palgrave Macmillan, Cham
  • eBook Packages Economics and Finance Economics and Finance (R0)
  • Print ISBN 978-3-030-03040-7
  • Online ISBN 978-3-030-03041-4
  • Buy this book on publisher's site