Podcast: Regulating credit card interchange fees
Dr Eric Crampton
23 April, 2025
In this episode, Eric discusses credit card interchange fees with NERA's James Mellsop, who argues that the Commerce Commission's proposed regulation capping these fees could harm competition and innovation despite aiming to benefit consumers.
They express concern that the Commission's narrow focus on allocative efficiency overlooks the dynamic benefits of interchange fees in financing innovation and new market entrants, potentially undermining the Commission's own goals of increasing competition in the banking sector.
Related links:
- Patrick McKenzie on credit card rewards and interchange fees
- Patrick McKenzie and Gary Leff on airline points and credit card schemes
- The Commerce Commission’s process on credit card interchange regulation
- The Initiative’s submission on the Commerce Commission’s retail payment system consultation
- Mastercard Submission – Commerce Commission (the Commission) Draft Decision on interchange fee regulation for Mastercard and Visa networks
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