Regulating the Payment Card Industry

Overview

The payment card industry is subject to substantive regulatory pressure. Both the fees, especially the interchange fees, and the scheme rules have been scrutinized and in many jurisdictions also regulated. Taking this interest of authorities at its face value suggests that the payment card market is not functioning according to the best interests of at least some its participants. Especially merchants have complained about the high fees charged from them when accepting card payments. These complaints explain in part why most past and current propositions for regulation have targeted the relationship between the merchant and the payment card industry.