Efficiency and risk in small-value, cross-border payments: The North American case

Initial findings from a study of efficiency and risk involving small-value, cross-border payments in North America suggest that cross-border payment arrangements have not changed much since the adoption of NAFTA. Cross-border and local banking remain the primary methods for making small-value paymen...

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Bibliographic Details
Published inThe North American journal of economics and finance Vol. 7; no. 2; pp. 163 - 170
Main Authors Marquardt, Jeffrey C., Wells, Kirstin E., Summers, Bruce J.
Format Journal Article
LanguageEnglish
Published Elsevier Inc 1996
Elsevier
SeriesThe North American Journal of Economics and Finance
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Summary:Initial findings from a study of efficiency and risk involving small-value, cross-border payments in North America suggest that cross-border payment arrangements have not changed much since the adoption of NAFTA. Cross-border and local banking remain the primary methods for making small-value payments. The check, which is the predominant payment instrument in all three NAFTA economies, entails high cost and increased risk when used for cross-border payments. An electronic, bulk payment alternative to the check and wire transfer is widely desired, but appears slow to develop. A major question is whether inefficiencies can be overcome given current technologies and banking arrangements.
ISSN:1062-9408
1879-0860
DOI:10.1016/S1062-9408(96)90007-8