Payment Card Research Articles

Factors Affecting MSMEs in Using QRIS and Electronic Data Capture (EDC) as a Cashless Payment Method: Evidence from Sorong City, Southwest Papua

Rapid progress has been made in the development of cashless payment systems. As can be seen from the positive level of public acceptance of this payment method development standard, moreover this trend has become necessary for rural communities. QRIS and debit card payment via EDC are the non-cash methods that MSMEs players in Sorong city utilize the most frequently. Sorong city is quite developed province of Southwest Papua Indonesia, which is well regarded as a commercial and industrial hub. According to reports as of January 2022, the use of QRIS by merchants in the Sorong city itself has not met the target set by Bank Indonesia. This research aims to examine the variables that affect MSMEs players decision to use QRIS and EDC for cashless transactions. In this quantitative research, the variables predictor used are the extended Technology Acceptance Model (TAM) by Davis, with are perceived risk as X1, perceived ease of use as X2, and perceived usefulness as X3. Convenience sampling was the sampling technique utilized, with questionnaires distributed to the 60 MSMEs players throughout Sorong city. Multiple linear regression analysis is used to determine the significance relationship between predictor variables and response variable. The findings demonstrate that there is significant relationship between perceived ease of use and perceived usefulness on the decision of MSMEs players to use QRIS and EDC for cashless payments in their businesses, while the usage decision not significantly affected by the variable of perceived risk. The research's empirical evidences are expected to increase local business literacy and provide a reference for the government and policymakers who make rules about cashless payment systems.

Circularizing PET-G Multimaterials: Life Cycle Assessment and Techno-Economic Analysis.

The recycling of multimaterials such as payment or access cards poses significant challenges. Building on previous experimental work demonstrating the feasibility of chemically recyclable payment cards made from glycol-modified poly(ethylene terephthalate) (PET-G), we use life cycle assessment and techno-economic analysis to investigate two chemical recycling scenarios and evaluate their potential environmental and economic benefits. Recovering all components from the depolymerized products (Scenario 1) achieves substantial environmental benefits across most categories, reducing global warming by up to 67% compared to only recovering major components (Scenario 2). However, the environmental benefits in Scenario 1 incur 69% higher total annualized costs, causing its profitability to be dependent on a minimum selling price of £13.4/kg for cyclohexanedimethanol and less than a 10% discount rate. In contrast, Scenario 2 is less sensitive to discount rate variation and thus a lower risk and more economically feasible option, albeit less environmentally sustainable.

Analysis of Indexes of the Russian Bank Cards Market by Various Criteria

Purpose of the study. The article presents the results of a study and analysis of the performance indexes of the Russian bank cards market on various grounds, because bank cards contribute to increasing the availability of financial services. Having a bank card allows you to carry out financial transactions anytime and anywhere and makes these transactions more convenient and transparent. The use of bank cards as a non-cash form of payment is not only convenient and practical, but also contributes to improving the economic situation in the country, expanding the availability of financial services and improving financial literacy.Materials and methods. As research tools, such methods were used as: analysis of the structure and dynamics of the main indexes, correlation and regression analysis, analysis of time series and forecasting, graphical and tabular methods for presenting research results.Results. The analysis carried out in relation to the issue of bank cards in Russia made it possible to establish the impact on the number of payment cards of two factors: the number of credit institutions and the average per capita income of the population (per month). The results obtained showed that an increase in the number of credit institutions leads to a reduction in the number of issued payment cards. In turn, with an increase in the average per capita monetary income of the population (per month), the number of payment cards increases. This suggests that a high level of income and good conditions for obtaining credit funds are an incentive to use payment cards. Bank cards are an integral part of the financial services market. The development of the bank card market has an impact on stimulating the country’s economic growth and improving the quality of life of the population. In modern conditions, banks are actively introducing electronic technologies and improving the use of bank cards by customers. The creation of convenient services and the introduction of new technologies make it possible to expand the possibilities of using bank cards for their holders.

Providing and evaluating a comprehensive model for detecting fraudulent electronic payment card transactions with a two-level filter based on flow processing in big data

Providing and evaluating a comprehensive model for detecting fraudulent electronic payment card transactions with a two-level filter based on flow processing in big data

РАЗРАБОТКА АЛГОРИТМА ФУНКЦИОНИРОВАНИЯ АППАРАТНОГО МОДУЛЯ СИСТЕМЫ АВТОМАТИЗАЦИИ ВЕДОМСТВЕННЫХ АЗС

The issue of developing an algorithm for operating the hardware module of the departmental petrol station automa-tion system is considered. The paper gives the development features related to the system hardware implementation, which accounts and controls fuel consumption, analyses fuel level in the tank, provides service only to the authorised users, and also allows controlling the system remotely. The hardware part is implemented as a control terminal. The authors present the main stages of the algorithm development, including the system structure examination, the criteria development, the control scheme determination, the algorithm for operating the petrol station terminal, regulated by the operating mode cycle, taking into account the functional state of the system parameters. When developing the al-gorithm, the structural implementation features of the hardware module are taken into account, the parameters for using the GSM network, the freeRTOS operating system are determined, and the online payment card structure in the MIFARE card format is developed. A development peculiarity is that the developed algorithm for the terminal opera-tion can be adapted to the structure of any automated filling system without modifications.

글로벌 전자상거래 활성화를 위한 온라인 쇼핑 소비자의 지불수단에 따른 가격민감도 차이에 관한 연구

Globally, online shopping transactions are at an all-time high every year. The E-Commerce market has stimulated demand for online shopping and digital transactions due to COVID-19. These changes are affecting consumers' online shopping behavior and global companies' strategies. Therefore, this study can be a helpful indicator in understanding basic online shopping consumer behavior. In particular, we examined how consumers behave by introducing psychological variables such as price sensitivity, mental budget, and sense of control according to payment method in online shopping. First, it was confirmed that price sensitivity was low when the payment method was a credit card in an online shopping situation. Then, the mediating effects of the mental budgeting and mediated moderating effect of sense of control were analyzed. As a result, this study found that the price sensitivity increases as the degree of mental budget increases even though credit card payment situation. In addition, it shows that this moderating effect was mediated by the sense of control. These studies will help companies understand consumer behavior and establish strategies accordingly. In online shopping payment situations, consumers can induce the right value by allowing themselves to check their spending status and funding plans. And various stakeholders at the payment system level can expect to attract more consumers by linking these services with payment.

Cash usage in Poland in 2020: Insights into the role of the COVID-19 pandemic and spatial aspects

The study explores the factors likely to induce Polish customers to pay by cash, instead of payment cards, for goods and services they are purchasing. The basis of our investigation is microdata obtained in 2020, during the “Payment Habits in Poland in 2020” study, which was conducted by Narodowy Bank Polski (National Bank of Poland) in 2020. The analysis is performed using the two-stage Heckman approach. In the first stage, card adoption factors are analyzed using a probit model; then, in the second stage, the OLS model is employed to analyze the propensity to pay by cash, despite having a payment card. Apart from typical factors affecting the use of different payment methods, e.g., age, income, education, or perceptions about payment methods, we find an important role of two, yet under-investigated factors, namely: the COVID-19 pandemic and spatial aspects. E.g., we find that self-reported change in payment behavior during the pandemic indeed was reflected in diary studies. Furthermore, we show that instances of merchants’ refusal to accept cash significantly impacted payment choices. Moreover, the results indicate significant spatial heterogeneity in payment behavior and that aspects like distance to the nearest ATM impacted cash usage, as more cash is used when ATMs are farther away, illustrating the concept of "cash burns." Lastly, it has been noticed that during the pandemic, ownership of contactless payment cards significantly reduced cash usage, most probably due to the fear of contracting the disease by physical contact with surfaces (like cash).

The main factors affecting credit card use in Albania-the case of Tirana

Considering the importance of debt in the economy, this study aims to find out the main factors that indicate the changes in credit card usage in Albania. Moreover, the research is focused on answering the questions regarding the attitude of cardholders and non-cardholders in particular after Covid-19 pandemic. Firstly, specific data have been taken from the Bank of Albania and the information was used to release the position of credit cards in Albania in recent years, by illustrating the total number of credit card payments and the number of issued and active credit cards in years. After that, a survey was conducted through an online questionnaire and personal interviews in order to have a clear picture of the current use of credit cards in Tirana. Data collected and analyzed points out that the majority of citizens have knowledge about credit cards. It is indicated that education and level of income are the main factors that affect credit card usage. The pandemic situation affected also the behavior of customers, making them buy more often with credit cards. The data show that the biggest advantage regarding credit cards is that they are a very practical payment method. However, financial institutions should create other eligibility criteria that could be met by a wider proportion of the population and also they should be more informative. As this research paper is related only to people who live in Tirana, further study is needed to cover other regions of Albania as well.

Credit Card Default Prediction Analysis: Based on Default Data of Taiwanese Customers from April to September 2005

Credit cards are widely used due to their overdraft function, which establishes a loan relationship between customers and financial institutions. However, defaulting on credit card payments can result in negative consequences, such as bad credit records for cardholders and economic losses for financial institutions. This research paper analyzes credit card default data in Taiwan from April to September 2005, with the aim of providing support for financial institutions to effectively monitor credit card risks.

Author Correction to: Evaluating the environmental impact of debit card payments

Author Correction to: Evaluating the environmental impact of debit card payments

Digital payment services in Poland as assistive technology and empowering tool for consumers with disabilities

The retail payments market is developing, and the implementation of digital payments has been one of the trends in consumer finance worldwide. This is the first study to jointly examine the perception of digital payment methods and financial services’ role, for consumers with and without disabilities. First, based on a nationwide survey on Internet users in Poland, the authors compared the popularity of selected financial services among consumers, then the perception of characteristics of payment methods. The results revealed that consumers with disabilities use a wide range of payment services, and they are included in digital finance. Moreover, contactless payment cards are used by consumers with disabilities even more often than by consumers on average. The results suggest that the control over finances make digital payments an important empowering tool for consumers with disabilities. Finally, the paper provides recommendations for the banking sector, on strategies for offering digital financial services.

How Crime Shapes Insurance and Insurance Shapes Crime

Abstract Crime creates demand for insurance but supplying insurance may promote crime. We examine five case studies of insured crimes (auto theft, art theft, kidnap and hijack for ransom, ransomware, and payment card fraud) and find a co-evolutionary process through which insurers engage with insureds, governments, and legal and extralegal third parties to mitigate losses, particularly when criminal innovations destabilize the insurance market. “Insurance as crime governance” stimulates demand for security, shapes criminal incentives, engages with the state to combat crime, and tolerates some crime in the interest of profitability.

“Repayment-by-Purchase” Increases Consumer Debt Repayment

This article tests the effect of a novel credit card payment format—repayment-by-purchase—on consumers’ payments toward credit card debt. In contrast to typical balance repayment, where consumers make repayments relative to a total amount owed, repayment-by-purchase prompts consumers to select items (e.g., a Starbucks coffee) or categories of purchase (e.g., restaurant and café purchases) and to make payments toward their related debt. A field experiment first suggests that customers who opted into repayment-by-purchase paid 12.18% more toward their statement balance than a control group. Subsequently, five lab experiments show that consumers repaying-by-purchase increase repayment by an average of 22.47% over typical balance repayment. Process evidence suggests that these differences may be driven by repayment-by-purchase's power to increase purchase salience, which in turns increases perceptions of progress toward reducing debt. Consistent with this theory, the effect of repayment-by-purchase on bill repayment emerges regardless of whether consumers repay durable versus nondurable goods, and for specific items or categories of purchases, as long as the bill uses labels that are concrete enough to raise past purchase salience.

Consumer Experiences with Gift Card Payment Scams: Causes, Consequences, and Implications for Consumer Protection

ABSTRACT Retail gift cards are requested by fraud perpetrators in many types of mass marketing scams because they are accessible to consumers and card values can be redeemed remotely and anonymously. We interviewed 27 individuals who experienced a gift card payment scam. Five themes emerged: (1) contexts of vulnerability, (2) cognitive and emotional dissociative states, (3) the mixed efficacy of retail interventions, (4) self-blame, and (5) consumer education and other safeguards. Contextual and situational factors, such as work stress, having a recent experience that corresponded with the premise of the scam, and having an unmet financial or socioemotional need, increased vulnerability. Perpetrators used strong emotional appeals to activate a stress response and to interfere with participants’ reasoned decision making. To prevent victimization, direct questioning by retail employees was less effective than outright refusals to sell them gift cards. Several participants reported severe emotional distress and symptoms associated with trauma following victimization. Participants did not hold the retail stores or gift card issuers accountable for their losses and instead expressed self-blame. They advocated for more consumer education about gift card payment scams as well as more empathy and support for victims.

Should credit card rewards be taxed?

AbstractRewards that consumers receive on credit card payments influence their payment choice. They are not taxed but merchants deduct card fees from their taxes. This article analyzes the tax effects in a model where card companies set interchange fees, merchants decide whether to accept card payments, and consumers choose their preferred payment method. I find that card companies raise interchange fees when merchants are allowed to deduct these fees from their taxes. Taxing consumers' card rewards reduces interchange fees. The optimal distribution of cash and card payments cannot be supported without a policy combination of taxes and regulated interchange fees.

Estimating consumers’ willingness to pay for plant-based meat and cultured meat in China

Plant-based meat and cultured meat are two emerging alternatives to meat products as they have the potential to mitigate the adverse health and environmental impacts associated with meat consumption and production. Given plant-based meat is still in its infancy and cultured meat is not yet available in China, it is important to understand the economic implications of consumer’s preference for these meat alternatives. With an online consumer survey, we elicit consumer’s willingness to pay (WTP) for these two meat alternatives using a payment card method, and specifically examine the effects of six different types of information on consumer’s WTPs. Our main findings first indicate that positive/negative information has positive/negative effects on consumers’ WTP. With positive information, both nutritional and environmental information increase consumers’ WTPs. Moreover, specific information has a larger effect than general information, only for positive nutritional information. Lastly, knowledge about these meat alternatives, self-reported previous experiences with the meat alternative, education, income level, and the presence of children are positively associated with consumers’ WTPs, while age is negatively associated. These findings may facilitate designing effective consumer information campaigns, ultimately aiding in consumers’ choice of the meat alternatives.

Estimating Chinese consumer's willingness to pay for aquatic food following Japan's discharge of radioactive wastewater

The Japanese government approved to discharge the radioactive wastewater stored on the Fukushima Nuclear Power Plant into the ocean in April 2021. Given the geographical proximity between China and Japan, and the importance of aquatic foods in Chinese diet, we examine Chinese consumer's valuation of aquatic foods following Japan's plan to discharge the radioactive wastewater. With an online survey, we adopt a payment card approach to elicit consumer's willingness to pay (WTP) for two aquatic food products, each from four sources that are at different levels of being associated with radioactive wastewater. Also, given the controversy surrounding the discharge, we specify two information treatments to examine the effect of information on consumer's WTP. Our main results are both information treatments positively affect consumer's WTP for aquatic foods from freshwater and seawater aquaculture. Moreover, positive information decreases consumer's WTP for aquatic foods caught in the East China Sea, and negative information also has negative yet insignificant effect. Lastly, in general, information negatively affects WTP for aquatic foods caught on high seas. These results highlight the importance of effective public communication regarding Japan's discharge of radioactive wastewater, and it may also be used to predict changes in China's aquatic food markets.

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Purpose: It was decided to determine the influence of credit card contracts on the right to information of customers of financial institutions, Peru. Theoretical framework: The violation of the right to information has become a habit on the part of financial entities, since the regulatory and supervisory entities do not comply with overseeing and sanctioning this type of companies, therefore, the theoretical background found allowed to go deeper into the subject. Design/methodology/approach: A quantitative methodology was considered, under a non-experimental descriptive correlational design, surveying 60 people, made up of 30 lawyers and 30 clients of financial entities, Peru. Findings: The findings showed that when credit card contracts are prepared in an inadequate manner, which only benefits the financial institutions, clients' information rights will be inadequate. Likewise, a significance of less than 0.05 was reached. Research, Practical & Social implications: Clauses that exclude legal rights have a direct and significant influence on the right to information of customers of financial institutions. Considering the Spanish legislation in article 32.3 of the new Credit Card Payment Services Law and in Colombian legislation in Article 333 of the Political Constitution of Colombia, by allowing private initiative to carry out economic activities and warning that it does not allow companies to abuse their position of dominance, Paradoxically, it grants the financial sector all the faculties and tools to define its excessive and exaggerated charges that harm a population that loses purchasing power every day. It is recommended that the legislative and executive powers reform the 1993 Political Constitution of Peru, where it should establish that small bills that cause economic damage to consumers of financial entities are prohibited. Originality/value: It is essential that the state supervisory entities verify compliance with the clauses of the contracts, since this ensures that the right to information of each client in the financial sector is not violated.

How much does it cost the river near my house? An integrated methodology to identify a value for ecosystemic services (The case of Vjosa Valley in Albania)

This study aims to identify and evaluate ecosystem services and calculate the total economic value of Vjosa Valley, an endangered riverine ecosystem. An instrumental-deliberative approach is used with experts and Albania’s general public. The results show that experts highly evaluate Vjosa Valley for its cultural ecosystem services, while the general public assigns higher importance to regulation ecosystem services. Two monetary measures have been calculated, WTP and WTA. The results indicate no significant differences between WTP and WTA when using a payment card. Participants will pay, on average, 7% of their monthly incomes to protect Vjosa Valley from Hydropower Construction. This study was developed during the pandemic of COVID-19, and the results may be affected by the context; however, it represents the first economic evaluation of this rare ecosystem in Albania and Europe.

Assessing the Customer Behaviour in Relation to Electronic Payment Systems (EPS) in Some Ghanaian Banks in the Kumasi Metropolitan Assembly- Kumasi, Ghana

Although other payment methods are available, like card, cheque, mobile, and online payments, most Ghanaians still use the cash payment system. The study examined how Ghanaian customers felt about using electronic payments. These included determining thesector andctors that influence consumer adoption and use of electronic payment services in Ghanaian banks, examining customer satisfaction with e-payment in the banking sector, and preventing fraud. A sample size of 100 participants was chosen for the study using purposive sampling to select participants from the banks and systematic sampling to select participants from the customers. According to the research’s findings, factors such as usability, security, privacy, the caliber of the after-sales support, marketing mix, and reputation affect consumers’ opinions of electronic payment systems. According to the study, customers are satisfied with the value offered for their banking requirements and the opportunity to experiment with e-payments in the banking sector. The study also found that while customers’ top concerns are trust and security, barriers to e-commerce include a low internet penetration rate, fewer users, expensive and challenging e-commerce technology, and a lack of progress in other supporting industries. Trust and security are significant deterrents against using electronic payment systems. The ability of consumers and banks to reach a larger market and participate in the world payment system is another way that technology can help the economy. Stakeholders should offer the unbanked sufficient assurances of security for utilizing electronic payment systems on their privacy without requiring them to maintain accounts with them. Keywords: Electronic Payment Systems (EPS), Automated Teller Machines (ATMs), Kumasi Metropolitan Assembly (KMA)Payment Portal Services (PPS), Information and Communication Technologies (ICTs), and Central Business District (CBD).