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2 results

  • 5 - Can Technology Foster Price Transparency in Credit Card Processing Markets?

  • from Part I - Contemporary Technological Developments
  • Edited by Stacy-Ann Elvy, University of California, Davis, Nancy S. Kim, Chicago-Kent College of Law
  • Book:
    The Cambridge Handbook of Emerging Issues at the Intersection of Commercial Law and Technology
    Published online:
    08 February 2025
    Print publication:
    20 February 2025, pp 107-127

  • Summary

    Credit card processing relies deeply on technology, so it is no surprise that technological forces are responsible for some of the problems with opaque pricing in this market. Technology made modern credit card processing possible by speeding up the transactions and making transactions less expensive. But this same technology made pricing harder for merchants to understand and compare among different credit card processors. Academic scholarship has failed to address nontransparent pricing for merchant card processing, and laws in various countries are focused on interchange fees, not merchant fees. This chapter argues that legal academics should study credit card processing fees and that regulators should use Canadian laws as an example of how to foster transparency.