The Study On Pricing Mechanism And Strategy For Bankcard System's Exchange Fee

As a typical network industry, the bankcard system has indirect network externalities and using externalities. It is also the typical two-sided market which need forming effective profit-distribution mechanism to promote the coordinate operations between two sides.Chinese bankcard industry is growing rapidly. The developments of the market scale and the amount of card issued are very large. China has become the fastest growing country in the world at bankcard area. Because the development process is different from other countries, China's bankcard industry has some specific characteristics. Debit card products become the main contribution of the industry while the development of credit card is extremely difficult.Our exchange fee mechanism ignored the differences between the credit card and the debit card. Different pricing based on business types reduced the merchant's passion for accepting cards, kept down the development of the accept markets, and caused the imbalance of bank's earnings.Exchange fee is the crucial role which can balance the benefit of various departments of the payment card system. To solve the bottle-neck of Chinese bankcard industry's development, we should optimize exchange fee's pricing mechanism according to the characteristics of the Chinese bankcard industry. Through the different pricing of card product types and changing the operating model, the industries will be able to make a more effective balance structure which can bring profits to every part of the market.