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Consumer credit and payment cards

Author

Listed:
  • Schmiedel, Heiko
  • Bolt, Wilko
  • Foote, Elizabeth

Abstract

We consider debit and credit card networks. Our contribution is to introduce the role of consumer credit into these payment networks, and to assess the way this affects competition and equilibrium fees. We analyse a situation in which overdrafts are associated with current accounts and debit cards, and larger credit lines with JEL Classification: L11, G21, D53

Suggested Citation

  • Schmiedel, Heiko & Bolt, Wilko & Foote, Elizabeth, 2011. "Consumer credit and payment cards," Working Paper Series 1387, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:20111387
    Note: 332171
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    References listed on IDEAS

    as
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    12. Schmiedel, Heiko & Börestam, Ann, 2011. "Interchange fees in card payments," Occasional Paper Series 131, European Central Bank.
    13. Irina A. Telyukova & Randall Wright, 2008. "A Model of Money and Credit, with Application to the Credit Card Debt Puzzle," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(2), pages 629-647.
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    More about this item

    Keywords

    card competition; complementarity; consumer credit; payment pricing;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets

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