Dave Melvin '12 (2011 Capstone Festival Winner)
Credit Card Interchange Fees
The credit card network market is a duopoly;
Visa and MasterCard
are the two dominant
players. The Visa or
MasterCard network of
the issuing banks
charges the merchant
an interchange fee for
every credit card
transaction. This project
describes the process
of a transaction and the
role interchange fees play. Also discussed is the theory of
duopoly, data on the market concentration, history of
interchange fees, and current and past policies such as
the Credit Card Reform Act of 2009 and the Credit Card
Fair Fee Credit Act currently being proposed in Congress.
Finally, the study examines the possible effects on the
Visa-MasterCard duopoly if regulation is imposed on
interchange fees.
“The Life Cycle Hypothesis of Saving is Dead; Long live the Life Cycle Hypothesis”
Nakita Hanson '06(2006 Capstone Festival Winner)
“Optimal Currency Areas: A Case Study of Germany”
Cyndi Jacobs '06
