CMSPI Global Interchange Report – Available Now

02nd December 2020

Short Synopsis of ContentsInterchange fees are a significant burden for merchants and consumers. As a result, global authorities have adopted regulation aimed at reducing the cost of interchange. CMSPI’s Global Interchange Report analyzes the impact of interchange regulation by authorities worldwide and identifies effective methodologies used by regulators to ensure maximum consumer and merchant benefit of regulation.

As of 2019, global regulation limiting interchange, the largest component of the merchant service charge, has generated an estimated $82 billion in annual savings to merchants. This figure includes $10.4 billion a year saved when the European Union lowered interchange in 2015 as well as $9.4 billion in annual savings generated from the 2011 U.S. Federal Reserve caps on single-message debit transactions. Total savings also includes regulations across Europe, Africa, Asia, and the Americas.

The report quantifies the impact of interchange regulation on merchants and consumers, as they are the intended beneficiaries of interchange regulation. In some cases, the financial benefits of interchange regulation to merchants and consumers can be eroded by higher fees and reduced benefits. These include higher network fees, reduced rewards programs by issuing banks, and reduction of savings by the merchant acquirer.

Length: 62 pages

Global Interchange Report – CMSPI Insights Report

Report Contents:

Industry Overview

An in-depth overview of card payments and interchange

History of Interchange

We explore the history of interchange and how we got here

Global Review

A thorough global review of interchange regulation

Impact Analysis

Interchange regulation impact analysis

Regulatory Erosion

We explore the sources of regulatory erosion

Merchant and Consumer Impact

What has been the impact on merchants and consumers?

Countries Covered: 26 Countries and the total EU as a whole, covering 70% Global GDP (see map below)

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