State of the Industry Report September 2024

4

5

CMSPI – IAC State of the Industry Report

CMSPI – IAC State of the Industry Report

Glossary

139

Section 5 Overview – Payments and Regulation

96 99 100

Processes

139

Section 5.1 – Types of Government Intervention

Exception Processes

140

Section 5.1.1 – Interchange Caps

Set-Up/Operations

141

Section 5.1.2 – Co-badging/Dual Network Routing Regulation

105

Parties

142

Section 5.1.3 – Price Signaling: Discounting, Surcharging, and Steering

107

Economics

143

Section 5.1.4 – Government-Mandated Payments

109

Miscellaneous

144

Section 5.1.5 – The Challenges of Regulating Payments

109

Payment Methods

145

Section 5.2 – Payments Industry Regulation in the US

110

Appendix

146

Section 5.2.1 – Interchange Caps

110

Index

154

Section 5.2.2 – Card Co-Badging and Routing

112

Section 5.2.3 – Discounting and Surcharging

116

Section 5.3 – Payments Industry Regulation in Europe

118

Section 5.3.1 – Interchange Caps in Europe

118

Section 5.3.2 – Co-Badging and Routing in Europe

119

Section 5.3.3 – Discounting and Surcharging in Europe

122

Section 5.4 – Payments Industry Regulation in Australia

122

Section 5.4.1 – Interchange Caps in Australia

122

Section 5.4.2 – Co-Badging and Routing in Australia

126

Section 5.4.3 – Discounting and Surcharging in Australia Section 5.5 – Payments Industry Regulation in Japan

131

133 137

Section 5.6 – Risks and Outcomes from Each Policy Intervention

Section 5.6.1 – Interchange Caps

137

Section 5.6.2 – Co-Badging

137

Section 5.6.3 – Surcharging

138

Section 5.7 – Conclusion

138

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