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The effects of regulating interchange fees at cost on the ATM market

Donze, Jocelyn and Dubec, Isabelle (2008): The effects of regulating interchange fees at cost on the ATM market.

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Abstract

We show that regulating the interchange fee at cost reduces banks’ incentives to deploy free ATMs over time. Simultaneously, more and more pay-to-use ATMs are deployed by independent ATM deployers. These results are consistent with the recent evolution of the British ATM market.

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