Interchange Fees in Card Payments

Posted by D. Daniel Sokol

Ann Borestam, European Central Bank (ECB) and Heiko Schmiedel, European Central Bank - Securities Settlement Systems Policy Division have written on Interchange Fees in Card Payments.

ABSTRACT: The present paper explores issues surrounding multilateral interchange fees (MIFs) in payment card markets from various angles. The Eurosystem’s public stance on interchange fees is neutral. However, the Eurosystem takes a keen interest in facilitating a constructive dialogue among the stakeholders involved in this debate. Transparency and clarity with respect to the real costs and benefi ts of different payment instruments are indispensable for a modern and harmonised European retail payments market. Interchange fees (if any) should be set at a reasonable level so as to promote overall economic effi ciency in compliance with competition rules.