Federal Reserve Bank of Philadelphia Consumer Finance Institute: 'Interchange Fees in Payment Networks: Implications for Prices, Profits, and Welfare'
June 24, 2025
June 24, 2025
PHILADELPHIA, Pennsylvania, June 24 (TNSLrpt) -- A new working paper from The Federal Reserve Bank of Philadelphia's Consumer Finance Institute, co-authored by researchers from Drexel University, presents compelling evidence that capping credit card interchange fees could lead to lower prices and benefit all consumers, including those who pay with cash. The study challenges the long-held industry argument that such caps would primarily harm card users by reducing rewards.
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