James M. Lyon, First Vice President of the Federal Reserve Bank of Minneapolis, gave a presentation to the Minneapolis Fed's board of directors on Jan. 19, 2006 about bank card interchange fees. An article based on his presentation titled "The Interchange Fee Debate: Issues and Economics" is now available on the Minneapolis Fed's web site.
Lyon concludes: "The Fed, clearly, has no jurisdiction in this dispute and will not be intervening as either side would wish. Undoubtedly, the matter will play out in the courts for many years to come. But the academic research to date indicates that both parties will have a difficult time establishing a clear picture of the credit and debit card market, and the economics thereof."