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?

Foreword
Thomas M. Hoenig
President
Federal Reserve Bank of Kansas City

The 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

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

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