Credit and the no-surcharge rule

Cyril Monnet and William Roberds

A controversial aspect of payment cards has been the “no-surcharge rule.” This rule, which is part of the contract between the card provider and a merchant, states that the merchant cannot charge a customer who pays by card more than a customer who pays by cash. In this paper we consider the design of an optimal card-based payment system when cash is available as an alternative means of payment. We find that a version of the no-surcharge rule emerges as a natural and advantageous feature of such a system. -- No surcharge ; credit cards ; payments ; money ; search

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Year of publication:	2006
Other Persons:	Monnet, Cyril (contributor) ; Roberds, William (contributor)
Publisher:	Atlanta, Ga. : Federal Reserve Bank of Atlanta
Subject:	Kredit \| Credit \| Theorie \| Theory \| Kreditmarkt \| Credit market \| Agrarkredit \| Agricultural credit \| Regelbindung versus Diskretion \| Rules versus discretion

Extent:	Online-Ressource, (34 S.)
Series:	Working papers / Federal Reserve Bank of Atlanta. - Atlanta, Ga. : [Verlag nicht ermittelbar], ISSN 1936-5225, ZDB-ID 2171117-3. - Vol. 2006-25
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/70746 [Handle]
Classification:	D83 - Search, Learning, Information and Knowledge ; E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10003730553