This Essay argues for the introduction of public competition in the payment card clearance market as a method of addressing suboptimal competition in an industry with extremely high barriers to entry. The Federal Reserve competes with private parties for check, wire transfer, and ACH clearance,...

The challenge of financial inclusion is among the most intractable policy problems in banking. Despite being the world’s wealthiest economy, many Americans are shut out of the financial system. Five percent of households lack a bank account, and an additional thirteen percent rely on expensive...