Consumer payment choice: Merchant card acceptance versus pricing incentives

Autor:	Carlos Arango, Kim P. Huynh, Leonard Sabetti
Rok vydání:	2015
Předmět:	Economics and Econometrics Chargeback insurance media_common.quotation_subject Merchant account Payment ATM card Credit card ComputingMilieux_COMPUTERSANDSOCIETY Business Marketing Payment processor ComputingMilieux_MISCELLANEOUS Finance Merchant services Credit card interest media_common
Zdroj:	Journal of Banking & Finance. 55:130-141
ISSN:	0378-4266
DOI:	10.1016/j.jbankfin.2015.02.005
Popis:	Using transaction-level data from a three-day shopping diary, we estimate a model of consumer payment instrument choice that disentangles the effect of merchant card acceptance from credit card pricing incentives (rewards) at the point-of-sale. The lack of merchant card acceptance plays a large role in the use of cash, especially for low-value transactions (less than 25 dollars). Participation in a credit card rewards program induces a shift toward credit card usage at the expense of both debit cards and cash. In contrast, changes in the amount of rewards (ad valorem) has a small or inelastic effect on the probability of paying with credit cards. Our findings highlight the importance of the two-sided nature of retail payment systems and provide key insights into consumer and merchant behaviour.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::d70b5e52165d8070cac7abd344106d14 https://doi.org/10.1016/j.jbankfin.2015.02.005 Zobrazit plný text záznamu Full Text from ScienceDirect