Working Paper

Interchange Fees in Payment Networks: Implications for Prices, Profits, and Welfare

Robert M. Hunt,
Konstantinos Serfes &
Yin Zhang

May 2026

WP 26-29

Supersedes Working Paper 25-18 – Interchange Fees in Payment Networks: Implications for Prices, Profits, and Welfare

A revised paper is coming soon.

Dynamic Pricing of Credit Cards and the Effects of Regulation

Suting Hong,
Robert M. Hunt &
Konstantinos Serfes

November 2021

WP 21-38 – We construct a two-period model of revolving credit with asymmetric information and adverse selection.

Payment Systems

Working Paper

An Introduction to the Economics of Payment Card Networks

Robert M. Hunt

June 2003

WP 03-10 – Open payment card networks typically coordinate the activities of thousands of financial institutions that issue cards, millions of retail locations that accept them, and several hundred million consumers that use them.