Credit Card Use Research Articles

Impact of Psycho-Social Dimensions in Adoption and Use of Credit Cards: An Empirical Study from Pakistan

Purpose: The main purpose of this study is to explore those psycho-social factors which are affecting the usage of credit cards in the present day. Furthermore, it is also aimed to investigate the impact of those factors like parental involvement, religiosity, impulsivity, compulsivity, locus of control, social status, customer attitude and financial distress on credit card usage in the context of Pakistan.
 Design/Methodology/Approach: For the purpose, the questionnaire has developed and distributed among users of credit cards in Bahawalpur region of Pakistan. This research is quantitative in nature and a probability sampling technique has been used to collect data. Moreover, regression analysis is used
 Findings: The results reveal that parental involvement, compulsivity, and financial distress have a significant impact on credit card usage. However, the study failed to find out any impact of impulsivity, locus of control and religiosity on credit card usage. Similarly, the customer attitude and social status also did not have any impact on usage of credit cards.
 Implications/Originality/Value: The results of this study extend help to the banks, financial institutions and, particularly, futures researches in the field of digital currency. It is also pertinent to mention that now it is a need of the time to start working and developing new digital banking tools and ways to compete in the digital world. 

ASPEK HUKUM DAN PENYELESAIAN ATAS TRANSAKSI PEMBAYARAN JUAL BELI MENGGUNAKAN KARTU ELEKTRONIK

This study aims to analyze the legal aspects of the use of credit cards as a means of payment and settlement efforts from the bank in the event of a customer who does not pay the credit card. This research is a juridical-normative research, with the approach used, namely the statutory regulation approach and legal norms in accordance with existing legal issues related to the structure and principles of the applicable law. The results of the first research are that the legal aspects related to the use of credit cards in Indonesia include various regulations such as Law Number 19 of 2016 to Bank Indonesia Regulations, namely Bank Indonesia Regulation Number 14/2/PBI/2012 concerning Amendments to Bank Indonesia Regulation Number 11/11/PBI/2009 concerning the Implementation of Card-Based Payment Instrument Activities. Second, there are several attempts made by the banking sector in solving problems when there is default by the customer, these efforts can be carried out by conducting Negotiation, Mediation, Conciliation, Arbitration and Judiciary. With the existence of several alternatives in solving the problem, the bank can choose the efforts to be taken, such as the Cirebon Branch of Bank Rakyat Indonesia which chose mediation as the solution to the problem. Mediation is the main solution carried out at BRI Cirebon Branch, it is more effective and efficient in solving the problem, mediation as an effort to solve problems also has a strong legal basis and legitimacy as stipulated in Bank Indonesia Regulation Number 8/5/PBI/2006 concerning Banking Mediation.

GENDER IN MOBILE WALLET ADOPTION BY USING UTAUT MODEL

Mobile wallets (m-wallets) have replaced physical wallets and also replaced the use of debit and credit cards. This study aims to analyze the effect of gender on m-wallet adoption by using the UTAUT model. The research used quantitative approach with primary data was done by distributing online questionnaires. The sample was using purposive sampling and obtained 290 m-wallet users in Batam City who made a transaction through digital-based payment application during five months. The data analysis utilized SEM Partial Least Square. The results showed that performance and business expectations, social influence, and facility conditions had positive and significant effects on the intention to use m-wallets in Batam City, while gender did not have the effect in its relationship.

Examining the determinants of continuance intention to use and the moderating effect of the gender and age of users of NFC mobile payments: a multi-analytical approach

The interest in m-payments through mobile phones to replace the use of cash, credit cards or cheques is rapidly increasing in our society. The present study aims to examine the situation of near field communication (NFC) m-payment services along with the determinants of users’ continuance intention. To this intent, a sample of 1840 respondents with experience in using NFC payments participated in an online survey. During the first phase of this research, an structural equation modelling (SEM) technique was used to identify the acceptance predictors of mobile payments as well as to analyse the eventual moderating effect of the gender and age of the users of this tool. The second phase focused on the neural network model’s proficiency in assessing the relative impact of the most relevant predictors stemming from the aforementioned SEM analysis. The results obtained revealed subjective norms, risk, perceived usefulness, customer brand engagement and trust as the most significant antecedents of continuance intention towards NFC payments. The study also discusses the managerial implications derived from this research while assessing and suggesting potential user behaviour-based business opportunities for service providers.

Credit card payments: do cultural values matter? Evidence from the European Union

PurposeThis study analyzes how cultural and social values shape specific attitudes toward credit cards and indebtedness and consumption behavior.Design/methodology/approachThe study uses a panel dataset for a selection of European Union countries from 2003 to 2016. The relation between credit card use and social and cultural attitudes is constructed by controlling for past habits in payment behavior and cross-substitution with alternative payment instruments by employing a dynamic panel data analysis based on the system Generalized Method of Moments (GMM) estimator.FindingsThe total value of credit card payments positively correlated with values emphasizing risk-taking attitudes. When analyzing the propensity of using these instruments for larger purchases, the level of trust is the most relevant predictor. However, the results seemed region-specific with some variables correlating consumption behavior with credit card usage depending on the political and the economic background of the country. Moreover, risk-taking attitudes prevail when they are related to the extent to which countries rely on cash as a preferred payment instrument. Also, credit card usage is mainly explained by past habits and the economic context.Originality/valueThe model expands on previous credit card transaction research by including an additional set of cultural values able to account for the complex nature of payment instruments and their effects on indebtedness and consumption behavior.

Faktor–faktor yang mempengaruhi konsumen dalam menggunakan dan berhutang dengan kartu kredit di Jabodetabek

Purpose: This study discussed the factors that influence the use and debt of credit cardholders in Jakarta and surrounding areas (Jakarta, Bogor, Depok, Tangerang, Bekasi) Research methodology: The dependent variable used in this study is the use of credit cards and debts on credit cards. This study's independent variables were demographic factors, credit card feature factors, and attitude towards money factors. The sample of this study was 333 respondents using the purposive sampling technique. The data analysis model used is Ordinary Least Square (OLS). Results: The results showed that there were influences from demographic factors (age, income, family size), features on credit cards (credit limits), and attitudes towards money (the main payment method with credit cards, card tenure) on the use of credit cards; also, demographic factors (gender, type of work, level of education, income) and attitude towards money (minimum payment) on credit card debt. Therefore the factors that banks need to consider to increase their income, and the government for control of public expenditure, also the public to pay more attention to spending on their credit cards so that there is no accumulation of debt that cannot be paid. Limitations: This study has several limitations of specifically only examines the people who are in Jakarta and their surroundings (Jabodetabek) and examines demographic factors, features on credit cards, and attitudes. Contribution: This study will examine demographic factors, features on cards, and attitudes towards money by uniting variables per category into a unified category. The indicators in this study are adjusted to the community in Indonesia. Keywords: Attitude towards money, Credit cards, Credit card features, Demographics

A Decade Review of Research on College Student Financial Behavior and Well-Being

The last decade of research on college student financial wellness was driven by the onset of the “student loan debt crisis.” Prior to the focus on student loans, credit card use and marketing was the primary area of interest for those studying young adult finances on campuses. This paper consolidates the findings reported in twenty papers related to college student finances that were published in the Journal of Family and Economic Issues between 2010 and 2019. The work is organized into individual financial behaviors and its antecedents, followed by a summary of studies that study well-being indicators. The reviewed studies address financial behaviors as products of individual and personal characteristics, family relationships and formal socialization processes, and how these factors influence general well-being outcome. Though the approaches vary widely across published studies, each addressed at least one outcome within the socialization model. Credit card and student loan financial behaviors are common factors in determining well-being, their resulting impact on financial or general subjective well-being are mixed at best. The area of research is relatively new and directions for future research are outlined. Studies of emerging adults over time, replication of previous work, consistency in approach to measuring key constructs, and commitment to theoretically based approaches to research will all help to clarify our understanding of college students’ transition to financial independence.

The Influence of Financial Attitude, Financial Literacy, and Locus of Control on Financial Management Behavior (Study Case Working-Age of Semarang)

The financial attitude possessed by individuals can be realized because of literacy or knowledge. Meanwhile, the current level of working-age literacy in Semarang City needs to be improved. This background can be seen in the widespread use of credit cards, excessive consumption activities, and the low level of public knowledge about financial institutions and financial products and services. To inhibit this desire, a high locus of control is needed in the individual. This study aims to determine the influence and relationship between financial attitudes, financial literacy, and locus of control on financial management behavior at working-age in Semarang City. The research method used is the quantitative method with multiple regression analysis. The data collection technique was by distributing questionnaires to four hundred productive age groups in the city of Semarang. The results of this study showed that there was an influence between financial attitudes and financial literacy on partial financial behavior management based on hypothesis testing (t-test), but there is no influence between the locus of control on financial management behavior partially.

Correction to: College Costs and Credit Cards: How Student Credit Card Use Influences College Degree Attainment

The original version of this article unfortunately contained a mistake. The corrected details are given below.

Semi-Supervised Classification on Credit Card Fraud Detection using AutoEncoders

The use of credit cards for online purchases has increased dramatically and led to an explosion in credit card fraud. Credit card companies need to be able to identify fraudulent credit card transactions so that customers are not charged for items they do not buy. In this study, we will use semi-supervised learning and combine it with AutoEncoders to identify fraudulent credit card transactions. In this paper, we will implement the use of T-SNE to visualize fraud and non-fraud transactions, then improve the visualization using autoencoders. Classification report proved that it is possible to achieve very acceptable precision using semi-supervised classification to detect credit card fraud.

College Costs and Credit Cards: How Student Credit Card Use Influences College Degree Attainment

Since the turn of the twenty-first century, going to college has become increasingly financially difficult in the United States. Tuition prices continued to rise, state funding for higher education declined, and the mean family income declined or stagnated for all but the top 20 percent of families (Goldrick-Rab 2016). In a period where college has risen to be the preeminent way Americans can make a better life for themselves, it is becoming more difficult for Americans to pay for college. Financial aid does not cover as much of the price of college as it once did (Goldrick-Rab 2016), and college students are relying on financing methods like student loans more than ever before. Student loans, however, are not the only credit-based financial strategy college students use to pay for college (Manning 2000, 2005). With the explosion of consumer credit access from the 1980s to the 2000s, college students are using credit cards, many times to bridge gaps in their budgets as they try to pay for college. This paper utilizes data from the Education Longitudinal Study (2002–12) to examine the link between college student credit card use and bachelor's degree attainment and demonstrates that college students who carry a balance on their credit card from month to month have a lower likelihood of completing a bachelor’s degree, net of other important factors. Research in the fields of financial counseling and planning, consumer studies, public policy, sociology, and health has explored college student credit card spending behaviors, associated health and educational outcomes, and the influence of family backgrounds on credit card use. This paper extends this existing body of research by considering how college student credit card use influences educational outcomes.

Does robo-advisory help reduce the likelihood of carrying a credit card debt? Evidence from an instrumental variable approach

The rapid increase in consumer credit card debt has been a major concern in the United States. The emerging robo-advisory, which allows fraud detection and credit spending planning, has shown to be a potential preventive measure for credit card indebtedness. Thus, the present study examines the causal effect of robo-advisory usage on the likelihood of carrying a credit card debt. Instrumental variable regression is carried out on a sample (n = 1762) extracted from the 2015 National Financial Capability Study (NFCS) Investor Survey and State-by-State Survey. Although the present study cannot establish a causal relationship between robo-advisory and carrying a credit card debt, this study shows that fear of investment fraud can be a suitable instrument variable for examining this relationship in future research. Results are robust after controlling for an individual’s demographic factors and variables related to financial literacy that may affect credit card use.

Has Financial Inclusion Made the Financial Sector Riskier?

This paper examines whether high levels of financial inclusion is associated with greater financial risk. The findings reveal that higher account ownership is associated with greater financial risk through high nonperforming loan and high cost inefficiency in the financial sector of developed countries, advanced countries and transition economies. Increased use of debit cards, credit cards and digital finance products reduced risk in the financial sector of advanced countries and developed countries but not for transition economies and developing countries. The findings also show that the combined use of digital finance products with increased formal account ownership improves financial sector efficiency in developing countries while the combined use of credit cards with increased formal account ownership reduces insolvency risk and improves financial sector efficiency in developing countries.

Some legal issues about credit cards in Vietnam - Compare with US law provisions

Credit card service is a relatively special type of service. In essence, the specialness of this type of business is expressed in the fact that credit institutions have combined their two basic operations, including payment activities and credit granting activities into one type of service. The law about credit cards requires a smooth combination of the above provisions and constitutes a complete legal framework to regulate issues including the card business of credit institutions, credit card usage of customers, intermediary payment activities of card payment organizations. The initial research results show that risks in the credit card payment process are inevitable. In addition to the risks of technical and security factors, other risks involve legal risks for the obligation to ensure safety for credit card payment activities of entities related to this process. Hence, the identification of legal risks to clearly define the legal rights and obligations of related parties is a necessary study that contributes to the development of Vietnam's credit card market in the integration period. On the basis of comparing with the provisions of the law of the United States governing credit cards, the authors contend that this separate legal document for credit cards needs to be emphasized on important contents such as cardholders, credit card issuance and use contracts, the problems of clarification of responsibility to bear risks, interest rates and fees for the use of credit cards, credit limits, problems with consumer credit card abuse, and credit card fraud. These contents will be analyzed in detail to make recommendations with the aim of creating a complete legal framework in regulating credit card activities. Thereby we can take advantage of credit cards as well as minimize disadvantages from credit cards.

Analysis of the level of financial education, debt, and the use and knowledge of credit cards in a multiple banking branch in the city of Navojoa, Sonora

This research shows an analysis of financial education, debt, and use and knowledge of credit cards. This research was a case of study and the object of study were costumers of a multiple banking branch in the city of Navojoa, Sonora, a questionnaire was applied to a probabilistic sample of type subjects, resulting in 201 surveys, the Rivera instrument and Bernal (2018) is divided into three categories: a) financial education, b) indebtedness and c) use and knowledge of credit cards, the level of financial education, indebtedness and use and knowledge of credit cards of bank users was determined Furthermore, ANOVA tables were made to analyze the level of significance of sociodemographic variables with the categories analyzed.

The determinant of behavioral factors which influence on credit card usages

The purpose of this paper is to examine which behavior factor effect on credit card use. Among different behavior factors, which factor more positively and significantly influence credit card use? The data are collected from individuals who have a credit card through the Lahore questionnaire. The finding shows a strong influence of behavior factor on credit card uses especially perceived usefulness. And perceived risk has a positive impact on credit card use. The study is limited to only the service sector as a credit card. Convinces sampling technique is used. For further research, influence on customer or client income also takes into consideration. This research is no precious in Pakistan's credit card, which studies behavior influences credit card use.

Financial Literacy in Millennials

The main goals for this project include are to find out the current knowledge of teens (14-20) with regard to financial literacy, to create a survey from which external information can be gathered and to analyze the results and observations of this survey, and thus make recommendations to financial and educational institutions. The goal of teaching financial literacy to teens is to reach them with relevant information they can really use in life now and in the future. This can be extended to financial decision making later as they enter adulthood. It’s useful to center instruction around important upcoming life events such as college decisions, budgeting on a tight budget, use of credit and debit cards and learning how to save and invest in the future. This also includes managing personal finance in college, especially if they decide to go to a foreign country. In this research project we will investigate the knowledge base teenagers have regarding money management and decision making. As a base we will use one of the largest financial services surveys for financial literacy created by the National Financial Educators Council. The goal of this project is to create a list of 30 questions derived from the most appropriate national surveys and administer it to more than 50 individuals, ages 14-20. The key insights included that 71.2% respondents did not consider themselves financially literate. It was clearly visible that respondents lacked knowledge on topics such as inflation, credit score and insurance. Moreover, 78.8% of respondents have not taken any class/course in financial literacy. The report concludes with recommendations to both financial institutions and educational institutions to increase specific areas of financial literacy.

A sequence analysis approach to segmenting credit card customers

This research examines the longitudinal relationships between patterns of customer loyalty behavior and firm financial outcomes in the context of credit card use. By examining credit card users' transactions with a focal bank and its competitors, this study creates a typology of loyalty behavior and employs a sequence analysis to segment customers on the basis of their behavioral patterns exhibited over time. The analysis results in six distinct customer segments: Loyalist, Switching Loyalist, Switching Defector, Defector, Dormant Loyalist, and Dormant Defector. We subsequently estimate the revenue, servicing costs, and profitability associated with each segment, and assess differences across segments. We discuss the implications for managing distinct credit card customer segments and optimizing the bank's marketing resource allocation.

The use of credit cards among low- and middle-income individuals in Colombia and the channels of monetary policy

Data for a retail credit card, which enables customers to finance purchases of semi-durable and non-durable goods, are used to show the way in which monetary policy and other interest rates affect the credit limits, the probability of use, and the value of purchases. This credit card, targeted at low- and middle-income individuals, is held by a quarter of employed labour force in Bogotá. Permanent and transitory incomes play an intuitive role in these three dimensions of the credit card. Credit limits are determined by the intervention interest rate, which supports the presence of the lending channel. The probability of use is determined by the usury interest rate while monthly purchases are affected by the interest rate charged by the financial institution and the usury interest rate, both indicative of the broad credit channel. Interestingly, after considering the customer’s observable characteristics, macroeconomic environment matters, mainly the labour market performance.

Legal Problems in the Use of Banking Credit Cards in Indonesia

One of the banking products in the credit sector that is becoming a trend in Indonesia is a credit card. Almost everyone who has worked has a credit card. Credit cards are usually used to facilitate payment transactions when shopping. This research aims to explain about credit cards, credit card regulations in Indonesian laws and regulations, and legal problems in the use of banking credit cards. The method used in this research is normative legal research, using a statutory approach. The research results explain that a credit card is a card-based payment instrument that can be used to make payments for obligations arising from an economic activity, including spending transactions and / or to make cash withdrawals, where the cardholder's payment obligations are first fulfilled by the acquirer or issuer, and the cardholder is obliged to make payments at the agreed time, either in lump sum (charge card) or by payment in installments. Legal problems that often occur between banks and customers using Credit Cards are defaults committed by customers because they don’t pay Credit Card bills or fines billed to them and the use of debt collector services by the bank in invoicing credit card users.