Credit Card Use Research Articles

The Rising Trend in the Use of Credit Cards in Bangladesh and Its Implications on Over-indebtedness and Its Difficulties in Personal Finance

Research in the area of rising trend of credit card and heading towards debt has become a controversial issue since 2008 when the debt crisis began in European countries, especially with the collapsing of Iceland banking system. Since the Greek crisis arose, the relationship between credit card and consumer debt is being scrutinized among researchers and financial parties. As Credit card enables an individual to purchase certain products and services without having money in the account or paying immediately, it actually accelerate consumers to spend more and fall in deep debts. However, within credit limit set by the issuing company, and provide convenience and safety to the buying process it can also be considered as a good substitute for cash and cheque. Once a credit transaction is made, the customer is allowed either to make a full payment or to make a minimum payment within a specified period. The purpose of this study is to investigate the rising trend in the use of credit cards in Bangladesh and its implication on over-indebtedness and its difficulties in personal finance. To carry out this study a survey was conducted and 85 copies of a structured questionnaire were distributed among the credit card users of different banks in Bangladesh. This study found that majority of the participants (60%) face financial difficulties with credit card debt and to keep up repayments up-to-date and the accumulating debt is seriously affecting the budgeting and personal finance leading to erratic consumption and decreased saving and or no saving at all and thereby they were bound to modify their saving. On the other hand, the quality of services provided by the credit card issuers ranked by the users of credit cards as excellent by 2.4%, as good by 33%, average by 25%, poor by 15% and very poor by 25%. Various statistical tools and test, such as Analysis of variance (ANOVA), Z-test were conducted to test hypotheses and to analyze collected data. Various tables and graphs were also used for descriptive analysis.

Trends and Preferences in Consumer Payments: Updates from the Visa Payment Panel Study

Michael Marx, senior director, Visa Research Insights, conducted a workshop in 2009 at the Payment Cards Center (PCC) as the economy was emerging from a recession. At that time, it appeared that the recession had affected consumer payment preferences, especially those related to cash and credit cards. To get an update on consumers' use of the various payment methods, the PCC invited Marx to facilitate another workshop in 2014. More recent findings from the Visa Payment Panel Study reveal declines in cash use -- a return to the long-term trend -- and increases in credit card use, perhaps signaling some return of confidence among consumers. Check use continued its unbroken long-term decline, and debit card growth has slowed. Private label cards have also registered a steady decline in their share of spending volume for a number of years. Their revolving credit utility, however, remains consequential in financing consumer purchases.

Predictors of credit card use and perceived financial well‐being in female college students: a Brazil‐United States comparative study

AbstractThis article examines predictors of the financial well‐being of female college students living in São Paulo or New York, focusing upon the relationship with their credit card use behaviour. The results of structural equation models, based on 784 participants, suggest that financial self‐confidence and social comparison have an impact on the use of credit cards and exercise an influence on financial well‐being. Despite the fact that social comparison is more strongly predictive of credit card use among Brazilian women, credit card use behaviour has a greater impact on the well‐being of American women.

English

The use of credit cards for payment in lieu of cash since the introduction of the first credit card ever more widely known and used by people. On the early introduction of this credit card, the wearer is limited to certain circles. However, a few decades later the credit card industry primarily enter the end of the Decade of the 1970s, has penetrated almost throughout all parts of the world, including Indonesia. A credit card is issued by most commonly used by the public and apply the current International consists of a range of brands, among others, a very popular one is Visa and Master Card are each issued by the credit card company international and Master Card International. In practice many found the works in banking that may be subject to sanctions as set forth in the book of the law of criminal law (Criminal Code).

The Use of Credit Cards in Response to the Crisis of Serious Illness

This article contributes to the literature on the financial impact of cancer by presenting findings on the use of credit cards as a response to the financial crisis of relocation for specialist treatment for patients diagnosed with a hematological malignancy. The findings are from a study, funded by the Leukaemia Foundation of Queensland, examining the financial impact of relocation for specialist treatment for hematology patients in Queensland. To date, there has been no work on financial management strategies for hematology patients or research on the use of credit cards by cancer patients. The findings on the use of credit cards as a response to the financial crisis of serious illness are discussed in terms of income profile, gender, financial management strategy, and a sense of urgency and need.

Identity Theft and Consumer Payment Choice: Does Security Really Matter?

Security is a critical aspect of electronic payment systems. In recent years, the phenomenon of identity theft has gained widespread media coverage and has grown to be a major concern for payment providers and consumers alike. How identity theft has affected consumer’s payment choice is still an open research question. We use the 2009 Survey of Consumer Payment Choice (SCPC) to study the effect of identity theft incidents on adoption and usage patterns for nine different payment instruments in the U.S. Our results suggest that certain types of identity theft incidents affect positively the probability of adopting money orders, credit cards, stored value cards, bank account number payments and online banking bill payments. As for payment usage, we find that particular types of identity theft incidents have a positive and statistically significant effect on the use of cash, money orders and credit cards and a negative and statistically significant effect on the use of checks and online banking bill payments. These results are robust across different types of transaction, after controlling for various socio-demographic characteristics and perceptions toward payment methods.

Does knowing overcome wanting? The impact of consumer knowledge and materialism upon credit card selection with young consumers

Purpose – This paper investigates the determinants of credit card use and misuse by student and young professionals. Critical to the research is the impact of materialism and knowledge on selection of the appropriate credit card. Design/methodology/approach – This study uses survey research and partial least squares to investigate credit card behaviors of students versus young professionals. Findings – In a comparative study of young professionals and students, it was found that consumer knowledge, as expected, leads to better consumer selection of credit cards. Materialism was also found to increase the motivation for more optimal consumer outcomes. For more experienced consumers, such as young professionals, it was found that despite them being more knowledgeable, they were more likely to select a credit card based on impulse. Originality/value – This paper examines how materialism may in fact encourage some consumers to make better decisions because they are more motivated to develop better knowledge. It also shows how better credit card selection may inhibit impulse purchasing.

HC2D Barcode for Handwritings Verification Using Embedded Camera on Tablet

The authentication of a person is used to determine the stage of the transaction, such as a password or authentication by biometric verification. However, the majority such as financial transactions, and communications sector confirmed the use of credit cards and checks your ID card at all. Biometric identification method fingerprints, photographs, and signatures, especially the signature is the most popular. It is simple and easy to use. The signature can be easily copied in a short time because it does not require any special tools or equipment tampering. This paper presents the person identification using handwritten signatures is based on the detection of movement and HC2D Barcode false acceptance rate and false rejection rate is 0 and 0.2.

Influence of materialism and money attitudes on credit card use

The purpose of the current research was to examine influence of materialism, money attitudes and demographics on credit card behaviour of Indian consumers. Data from 409 respondents was collected across six cities in India through a structured questionnaire. Materialism scale, money attitude scales and credit cards scales were adapted from earlier researches for the research. Materialism, money attitude scale and credit card scales get modified in Indian context. New factors for materialism, money attitudes and credit card use were identified. Indian consumers' credit card use behaviour is influenced by age, materialism and money attitudes. The findings can help credit card companies in positioning and segmenting decisions. They should educate consumers about credit card interest rates, redemption schemes and incentives. Men were represented more than women in sample. Gender influence may prove useful in understanding differences in credit card acquisition behaviour. Sample was collected only from credit card owners. Future research can examine attitudinal differences among credit card users and non-users.

Probabilistic Vs. Soft Computing for Classifying Credit Card Transactions. A Case Study of Pakistani's Credit Card Data

Credit cards are now widely used by consumers for purchasing various goods and services due to widespread use of internet and consequential growth of E-commerce over the past few decades. This enhanced use of credit cards has increased the associated risks such as fraudulent use of credit cards that can cause financial loss to the card holders as well as to financial institutions. It is an ethical issue and has legal implications in various countries where laws and regulations forces financial intuitions and credit card companies to employ various techniques to detect and prevent the credit card frauds. Although the changes in technological systems also change the nature of frauds but data mining techniques such as classification, regression and clustering are very useful and are widely used to prevent and detect the frauds associated with credit cards. The credit card fraud prevention and detection functionality is a type of classification problem for the new customer as well for existing customers. There are multiple data mining techniques that can be employed for classification of customers and each has its own pros and cons. This study will compare four classification techniques namely Naïve Bayes, Bayesian network, Artificial Neural Network and Artificial Immune Systems for credit card transactions classification on a dataset obtained from a commercial bank in Pakistan. The major contribution of this study is use of real data on which extensive experiments have been performed and various results have been analysed with conclusion of best technique.

Use of Credit Cards Before and After Bank and Credit Cards Law No. 5464 in Turkey1

Use of Credit Cards Before and After Bank and Credit Cards Law No. 5464 in Turkey1

Trends and Preferences in Consumer Payments: Updates from the Visa Payment Panel Study

Michael Marx, senior director, Visa Research Insights, conducted a workshop in 2009 at the Payment Cards Center (PCC) as the economy was emerging from a recession. At that time, it appeared that the recession had affected consumer payment preferences, especially those related to cash and credit cards. To get an update on consumers? use of the various payment methods, the PCC invited Marx to facilitate another workshop in 2014. More recent findings from the Visa Payment Panel Study reveal declines in cash use ? a return to the long-term trend ? and increases in credit card use, perhaps signaling some return of confidence among consumers. Check use continued its unbroken long-term decline, and debit card growth has slowed. Private label cards have also registered a steady decline in their share of spending volume for a number of years. Their revolving credit utility, however, remains consequential in financing consumer purchases.

An Assessment of Behavioral Law and Economics Contentions and What We Know Empirically about Credit Card Use by Consumers

“Behavioral Law and Economics” (BLE) is a specialized component of the legal literature that purports to base its conclusions on a branch of economic analysis known as behavioral economics. The central claim of BLE is that by applying findings of behavioral economics to the real world it can provide more accurate assumptions about individual behavior and decision making than neoclassical economics and thus better and more effective policy prescriptions where needed. To date, however, BLE’s claims have been almost entirely a priori, taking certain suggested biases identified in the laboratory experiments by behavioral economists and claiming that they extend significantly to actual consumer behavior and the need for regulation. Yet it is well accepted that the proper test of the scientific validity of an economic theory is the accuracy of its predictions relative to empirically testable hypotheses, not a priori reasoning or hypothetical extensions. This paper focuses on an area where BLE has been particula...

Does urge to buy impulsively differ from impulsive buying behaviour? Assessing the impact of situational factors

The study was undertaken to assess the role of situational variables in impacting impulsive buying behaviour. In all, the impact of nine situational variables—categorised as personal (money availability, economic well being, family influence, time availability, and credit card use), and in-store (sales promotion, store environment, friendly store employees, and store music)—on the constructs ‘urge to buy impulsively’ and ‘impulsive buying behaviour’ was studied. For this, data was collected from 508 mall visiting customers and analysed using Structural Equation Modelling (SEM). Importantly, 23 hypotheses were examined and 13 were found to be supported. Results indicated that apart from store music, all the selected situational variables significantly impacted impulsive buying behaviour. With regard to the construct ‘urge to buy impulsively’, results showed significant positive association with situational variables money availability, friendly store employees and credit card use. Also, results indicated that gender did not impact impulsive buying behaviour while age was found to have significant negative association with impulsive buying behaviour.In view of the potential bright prospects associated with the growing organised retailing, the study findings provide useful insights to both the theorist as well as the marketers.

Moderating role of perceived risk in credit card usage and experience link

Purpose– The purpose of this paper is to present the exploratory research into the moderating influence of perceived risk on credit card usage and experience link and to know, among various types of risks, which risk is mostly perceived by credit card users. The study also investigates the dimensions of usage and service experience and their relative significance in credit card industry.Design/methodology/approach– The data were collected from 220 credit cardholders working in the various business and service units operating in Gandhi Nagar area of Jammu city.Findings– The study captures a clear and strong moderating effect of perceived risk on usage and service experience link. Time risk appeared to be the strongest moderator. Further, sense of security and confidence benefits emerged as the strongest predictors of usage and service experience, respectively.Research limitations/implications– The study is based on single financial service only, i.e. credit card. To generalise the results in financial and allied sectors, such as banking, retail or travel, where credit card usage is highly prevalent, this study need to be extended in future research. Further, influence of customer income, occupation and education on credit card use can also be seen in the future. Finally, focus can also be given to the identification and testing of risk-reducing strategies in future research.Originality/value– There is no previous research on Indian credit card industry which examined the influence of perceived risk on its use among Indian customers and subsequently on their experience.

Devo, não Nego, Pago Quando Puder: Uma Análise dos Antecedentes do Endividamento do Consumidor

Estudos de marketing e sociedade com a finalidade de compreender a questo do endividamento mostram-se relevantes quando contribuem efetivamente na conservao financeira do consumidor. O objetivo deste trabalho consistiu analisar os fatores condicionantes do endividamento do consumidor. Para tanto, foram investigados os seguintes constructos: atitude frente ao dinheiro, atitude com carto de crdito, autocontrole, compra compulsiva, compra impulsiva e propenso ao endividamento. Por ser uma pesquisa de cunho quantitativo, procedeu-se a anlise estatstica descritiva, psicomtrica e a anlise multivariada de modelagem de equaes estruturais (SEM). A amostra foi de 301 respondentes, com aplicao na internet pela Plataforma Googledocs. Verificou-se a aceitao da hiptese que trata da influncia direta da atitude com carto de crdito na propenso ao endividamento. Indica-se a necessidade das aes de marketing voltadas a auxiliar os consumidores quanto ao uso e regulamentos do carto de crdito.

ANALSISIS FAKTOR-FAKTOR YANG MEMPENGARUHI MASYARAKAT KALIMANTAN SELATAN TERHADAP PENGGUNAAN PEMBAYARAN NON TUNAI

Economic growth in Indonesia can not be separated from a strategic role in the payment system to support economic activities. Strategic role of the payment system in economic activities, especially to ensure the implementation of various payment transactions, is made by the public and business. The development of innovations in the payment system is a logical consequence of the growing community needs for existence of instruments and payment mechanisms that are practical, efficient, safe and comfortable. Development of Card Payment Through in South Kalimantan are still very limited in the use of ATM cards, credit cards, and debit cards. The amount of public transactions using credit cards is also relatively very small and generally only in Banjarmasin and Banjarbaru. Card payment through low usage rate is not out of the involvement of the community in adopting card payment, so it is necessary to do research on the characteristics of the community. Characteristics of the community in South Kalimantan that different from other areas will be the research target. It is because people are consumers that determine the development of non-cash payments later. This community preferences will affect the use of non-cash payment instrument towards a cashless society.

Understanding Young Consumer Perceptions on Credit Card Usage: Implications for Responsible Consumption

The usage of credit cards among young consumers is often irresponsible – they tend to overspend and as a result find themselves in a debt situation. While existing research has often attributed overspending to the availability of advance credit, there remains a dark spot in understanding why consumers are overspending, particularly through the use of credit cards. This study aims to understand consumer perceptions on the usage of credit cards and subsequently provide recommendations to promote the responsible use of credit cards. Fifteen qualitative, in-depth interviews with young consumers were employed to understand their perceptions and considerations toward the usage of credit cards. Findings suggest a change in consumer culture from one which focused on saving first, spending later to one which encourages spending now, thinking later. Various rationales have been identified as motivators that encourage credit card usage, including security trends for a cashless society and as a reflection of social desires. Attractive rewards and poor spending restrictions afforded by credit cards were the main influences that caused young consumers to spend more than what they could afford, thus leading to a situation of overspending. Implications and recommendations from the findings are presented.
 
 Keywords: Credit Cards, Responsible Consumption, Consumer Behaviour
 
 To cite this document: Weng Marc Lim, Woo Kan Ng, Jin How Chin, and Alexander Wei-Xiang Boo, "Understanding Young Consumer Perceptions on Credit Card Usage: Implications for Responsible Consumption", Contemporary Management Research, Vol.10, No.4, pp.287-302, 2014.
 
 Permanent link to this document:
 http://dx.doi.org/10.7903/cmr.11657

Digitised money transactions and cultures of malling

This article explores the sociality of digitised money transactions in the use of credit and debit cards in New Delhi. The article draws from insights in Science and Technology Studies (STS) and uses ethnographic practices to capture the complexity of digital money usage. The findings suggest that digital money and its required technological infrastructure do not operate as neutral interventions. Rather, credit cards and consumer behaviour are generated by and implicated in a range of cultural codes and practices, such as contexts for debt vulnerability and fraud. Courts, banks and the government currently appear to be behind the regulatory curve for managing these transactions which clearly seem to outpace the existing legal capacities in India. Significantly, it also emerges that credit card usage, consumer debt and digital frauds need to be grasped as linked phenomena. Money and technology, hence, I argue, operate in sociologically and politically charged contexts.

An Assessment of Behavioral Law and Economics Contentions and What We Know Empirically About Credit Card Use by Consumers

“Behavioral Law and Economics” (BLE) is a specialized component of the legal literature that purports to base its conclusions on a branch of economic analysis known as behavioral economics. The central claim of BLE is that by applying findings of behavioral economics to the real world it can provide more accurate assumptions about individual behavior and decision making than neoclassical economics and thus better and more effective policy prescriptions where needed. To date, however, BLE’s claims have been almost entirely a priori, taking certain suggested biases identified in the laboratory experiments by behavioral economists and claiming that they extend significantly to actual consumer behavior and the need for regulation. Yet it is well-accepted that the proper test of the scientific validity of an economic theory is the accuracy of its predictions relative to empirically testable hypotheses, not a priori reasoning or hypothetical extensions. This paper focuses on an area where BLE has been particularly active and even influential — the analysis of consumer use of credit cards. Comparison of the claims of BLE against hypotheses of the traditional neoclassical model of consumer credit use developed over the past century finds that available empirical evidence uniformly rejects BLE’s hypotheses for consumer credit. In short, while behavioral considerations are an important component of economic analysis, its BLE extension to policy in the consumer credit area has not yet proven to be useful.