Interchange fees associated with credit and debit card transactions have been the focus of much debate recently in a number of countries. This international conference brought together four principal audiences - industry participants, legal authorities, central bankers, and academics - for an exchange of views and thoughts. The following issues were addressed:

  • What are the functions of interchange fees?
  • What factors should be considered in evaluating credit and debit card pricing mechanisms?
  • Are there conditions when regulatory actions are warranted?
  • What role, if any, should central banks play in the business of interchange?

PDFForeword
Thomas M. Hoenig

President
Federal Reserve Bank of Kansas City

PDFThe Contributors

External LinkConference Summary
Barbara Pacheco

Senior Vice President
Federal Reserve Bank of Kansas City

Richard Sullivan
Senior Economist
Federal Reserve Bank of Kansas City

PDFConference Overview
Hendrik J. Brouwer
Executive Director

Interchange Fees in Various Countries: Developments and Determinants
PDFPaper
PDFGeneral Discussion

Authors
Stuart E. Weiner
Vice President and Director of Payments System Research
Federal Reserve Bank of Kansas City

Julian Wright
Associate Professor
National University of Singapore

Discussant:
Alan S. Frankel |
PDFCommentary
Senior Vice President
Lexecon

Economic Rationale for Interchange Fees
PDFPaper
PDFGeneral Discussion

Authors:
David S. Evans

Vice Chairman, LECG Europe

Richard Schmalensee
Dean, Sloan School of Management
Massachusetts Institute of Technology

Discussants:
Michael L. Katz | PDFCommentary
Professor, Haas School of Business
University of California, Berkeley

Jean-Charles Rochet | PDFCommentary
Professor
University of Toulouse

Luncheon Address
PDFLloyd Constantine
Chairman
Constantine Cannon PC

Interchange Fees: Network, Issuer, Acquirer, and Merchant Perspectives
PDFPanel Remarks
PDFGeneral Discussion

Moderator:
Avivah Litan
Vice President and Research Director
Gartner Research

Panelists:
Xavier R. Durieu
Secretary General
EuroCommerce

José Gabeiras
Chairman of the Board
ServiRed

John Gove
Director
TransAction Resources Pty Ltd

B.J. Haasdijk
Chief Executive Officer, Interpay

William Sheedy
Executive Vice President
Visa U.S.A.

Susan Webb
Executive Vice President
J.P. Morgan Chase

Interchange Fees: Central Bank Perspectives and Options
PDFGeneral Discussion

Thomas M. Hoenig | PDFCommentary
President and Chief Executive Officer
Federal Reserve Bank of Kansas City

Philip Lowe | PDFCommentary
Assistant Governor
Reserve Bank of Australia

Guillermo Ortíz | PDFCommentary
Governor
Bank of Mexico

Gertrude Tumpel-Gugerell | PDFCommentary
Member of the Executive Board
European Central Bank

PDFConference Attendees