Independent Service Operators in ATM Markets.

This paper studies the impact of entry of non-banks (termed Independent Service Operators, ISOs) into ATM markets. We compare two different regimes by which the ISO may generate income: (1) The ISO receives interchange fees and (2) the ISO charges consumers directly. We find that due to the entry of...

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Publicado en:Scottish Journal of Political Economy Vol. 61; no. 1; pp. 26 - 48
Autor principal: Wenzel, Tobias
Formato: Artículo
Publicado: Wiley-Blackwell Feb2014
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Independent Service Operators in ATM Markets.
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        au: Wenzel, Tobias
        affil: Universität Düsseldorf
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        Automated teller machines
        Automated teller machines -- Service charges
        Bank service charges
        Foreign exchange rates
        Bank customers
      sug:
        subj:
          Automated teller machines
          Automated teller machines -- Service charges
          Bank service charges
          Foreign exchange rates
          Bank customers
      ab: This paper studies the impact of entry of non-banks (termed Independent Service Operators, ISOs) into ATM markets. We compare two different regimes by which the ISO may generate income: (1) The ISO receives interchange fees and (2) the ISO charges consumers directly. We find that due to the entry of an ISO, the size of the total ATM network increases independent of the way the ISO is financed. Account fees increase if the ISO receives interchange fees and decrease if the ISO charges consumers directly. Consumers may not benefit from the entry of the ISO. If a regulator can control the interchange fee, entry by an ISO financed through interchange fees increases consumer surplus, while the entry of a surcharging ISO decreases consumer surplus.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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