Payment cards continue to replace cash and checks in advanced economies. Along with the growth of payment card transactions has come greater scrutiny by public authorities of certain payment network rules along with the level of certain fees. Chakravorti reviews the growing payment card literature and discusses the impact of...
Businesses, both small and large, are adopting new technologies to automate and reduce the exchange of paper documents in their transaction flows. However, more than 80% of payments between businesses are still made with paper checks. As the exchange of information along the supply chain becomes increasingly electronic, it raises...
Over the last decade, consumers have tripled their use of credit cards as more merchants have increased their acceptance of them. This increase suggests that incentives in today’s marketplace favor greater credit card use by consumers and acceptance by merchants. In this paper, Chakravorti and Shah study the set of...
Chakravorti studies systemic risk in multilateral net settlement systems is investigated using a four-period model. The model focuses on the tradeoff between systemic risk and the cost of interbank transfers along with the importance of the overnight money markets that were a key factor in the most recent financial crisis...