The Impact of Interchange Fee Regulations on Inflation: Understanding the Dynamics
In
recent
years,
discussions
around
inflation
and
its
economic
consequences
have
intensified,
with
policymakers,
businesses,
and
consumers
grappling
with
rising
prices.
Among
the
many
factors
contributing
to
inflation,
one
often-overlooked
area
is
the
role
of
financial
regulations,
particularly
interchange
fees.
These
fees,
which
are
charged
by
card
networks
(such
as
Visa
and
Mastercard)
to
merchants
when
consumers
make
card
payments,
have
become
a
significant
point
of
debate.
As
governments
around
the
world
implement
new
interchange
fee
regulations,
it’s
important
to
understand
how
these
changes
can
influence
inflation.
What
Are
Interchange
Fees?
Interchange
fees
are
the
fees
paid
by
merchants’
banks
(acquirers)
to
...
