The merchant backlash and legal and regulatory challenges to the interchange fee model spell trouble for issuing banks as well as card associations MasterCard and Visa.
Furthermore, emerging competitors like PayPal, and Google Payments pose another genuine threat to dominant card operations.
But there are steps that card issuing banks and card associations can take now to stem the flow of revenue from their businesses and even create new revenue sources.
This report from Diamond Management & Technology Consultants examines how issuing banks can protect revenues by developing new consumer card pricing models and forging new value propositions for merchants and consumers.
Download the document now 2 mb (Adobe Acrobat Document)