In the June 2023 e-Competitions Bulletin of
Concurrences, Managing Directors Ling-Ling Ang and Alan
Grant and former Consultant Peter Traber examine the findings of
their white paper "Analysis of the Potential Impact of the Credit
Card Competition Act of 2023." The proposed legislation
seeks to increase competition in the credit card industry by
limiting network exclusivity and giving merchants more control over
transaction routing. While the intended goal is to lower costs, the
discussion explores how these changes could also reshape incentives
for issuers, merchants, and consumers.
The analysis highlights key considerations from the study,
including how shifts in interchange fees and issuer constraints
could impact pricing structures, consumer rewards, and overall
market dynamics. By framing these findings within a broader
regulatory and economic context, the discussion raises important
questions about the potential long-term effects of the
legislation.
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