We examine the impact to date of the Reserve Bank of Australia's decision to reduce interchange fees on credit cards in Australia by almost half. We find that, in the short run, issuers have recovered between 30 and 40 percent of the loss of interchange fees. Merchants have benefited from lower...

This article is about a type of business that connects distinct groups of customers on a "multi-sided platform." Such businesses have been around for millennia. But their economic importance has increased with the Internet revolution. Many significant web-based businesses such as eBay, Facebook,...

Section 1075 of the 2010 Dodd-Frank Act requires the Federal Reserve Board to regulate the debit card industry including the interchange fee banks and credit unions receive from merchants. This paper reviews the arguments in support of this regulation put forward by Senator Durbin, who proposed...