The Analysis Of The Pricing Mechanism Of The POS Trade Charge In China

With the development of bankcard industry,point of sale or point of purchase(POS)payment,which gradually replaces cash payment,is going to be the major way for payment process.Bankcard industry possesses bilateral market characteristics and complicated network externality,which results in that charge of POS trade is synthetically affected by cost,competition,requirements of the bilateral market and other factors.The charge of POS trade contains interchange fee,acquiring service charge and liquidation service charge,which involves issuing bank,acquiring bank,cardholder and merchant.This thesis introduces the structure of POS payment in China including the characteristics of POS payment market.Furthermore,the card association in the market is introduced and research emphasis should be focused on pricing mechanism of open organization.Therefore,the model of interchange fee for POS payment is established considering previous model of optimal interchange fee and model of interchange fee in bilateral market with network externality.In this thesis,the historical development of determination of interchange fee for POS payment is introduced and discussed,especially'No.557 document' in 2016.Contrasted with foreign bankcard association,and with the prosperity of internet payment,the third party payment increases the competition of liquidation service between the connections of bankcard.A new model of optimal interchange fee is made in this thesis.According to the study of the pricing mechanism of charge of POS trade in China,reasonable and useful suggestions are proposed in the end.