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?

The conference was held at the La Fonda Hotel, May 4-6, 2005, in Santa Fe, New Mexico. Papers, remarks, handouts, and a listing of conference attendees are available below for viewing.

2005 Conference Program

Forward	Thomas M. Hoenig President, Federal Reserve Bank of Kansas City
The Contributors
Conference Summary	Barbara Pacheco Senior Vice President, Federal Reserve Bank of Kansas City
	Richard Sullivan Senior Economist, Federal Reserve Bank of Kansas City
Conference Overview	Hendrik J. Brouwer Executive Director

Interchange Fees in Various Countries: Developments and Determinants
\| Paper \| General 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 \| Commentary Senior Vice President, Lexecon

Economic Rationale for Interchange Fees
\| Paper \| General Discussion \|
Authors	David S. Evans Vice Chairman, LECG Europe
	Richard Schmalensee Dean, Sloan School of Management, Massachusetts Institute of Technology
Discussants	Michael L. Katz \| Commentary Professor, Haas School of Business, University of California, Berkeley
	Jean-Charles Rochet \| Commentary Professor, University of Toulouse

Luncheon Address
Lloyd Constantine Chairman, Constantine Cannon PC

Interchange Fees: Network, Issuer, Acquirer, and Merchant Perspectives
\| Panel Remarks \| General 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

Keynote Address
Noah J. Hanft General Counsel and Corporate Secretary, MasterCard International

Interchange Fees: Antitrust and Regulatory Perspectives
\| Panel Remarks \| General Discussion \|
Moderator	David A. Balto Partner, Robins, Kaplan, Miller & Ciresi L.L.P.
Panelists	Bernard Friess \| Commentary Head of Financial Services Division, Competition Directorate-General, European Commission
	Renata B. Hesse Chief, Networks and Technology, U.S. Department of Justice
	David Teal Senior Competition Law Officer, Competition Bureau of Canada
	John Vickers \| Commentary Chairman of the Board, Office of Fair Trading

Interchange Fees: Central Bank Perspectives and Options
\| General Discussion \|
	Thomas M. Hoenig \| Commentary President and Chief Executive Officer, Federal Reserve Bank of Kansas City
	Philip Lowe \| Commentary Assistant Governor, Reserve Bank of Australia
	Guillermo Ortíz \| Commentary Governor, Bank of Mexico
	Gertrude Tumpel-Gugerell \| Commentary Member of the Executive Board, European Central Bank

Conference Attendees