In light of the ongoing discussion and debate about the role of credit in todayâ€™s economic environment, has issued a paper that dispels misperceptions about payment systems and explains the tremendous economic value that electronic payments bring to the economy as a whole and their role in advancing commerce.
The paper, entitled â€œBenefits of Open Payment Systems and the Role of Interchange,â€ underscores the enormous benefits delivered by electronic payments, which have become so ingrained in everyday life they are often taken for granted or misunderstood. Few people ever stop to consider the complex and sophisticated system that allows transactions to occur within seconds, almost anywhere in the world.
â€œPerhaps the easiest way to grasp the value of electronic payments is to envision a world without them. Clearly, if electronic payments came to a sudden halt, many facets of commerce â€“ travel, trade and the Internet just to name a few â€“ would face dire consequences,â€ MasterCard President and CEO Robert W. Selander says in the introduction.
The paper also discusses the role of interchange â€“ a relatively small fee ultimately paid by merchants for the benefits of card acceptance. Interchange is critical to ensuring the system provides maximum benefits to all participants, including consumers and merchants in a fiercely competitive marketplace.