Credit Card Use Research Articles

Behavioral control or income? An analysis of saving attitudes and behavior, credit card use and buying on installment

IntroductionThe Turkish economy has gone through multiple economic crises, marked on the one hand by a volatile trend in the national financial system, and on the other, by the introduction of credit cards and payment facilities for consumer goods that are extremely easy to obtain. ObjectiveInspired by previous research on saving attitudes, motivations, and behavior, this study explores the perceptions of consumption conducted using credit, either in the form of referred monthly payments or credit cards in the Turkish context. MethodTo analyze the possible relations between saving attitudes, behaviors and new payment methods, a survey was conducted in Istanbul, with a convenience sample of independent professionals, managers and executives, and small business owners (n=173). Their attitudes and behavior toward saving, buying on installment, credit card use and debt were combined with measures of self-reported control over spending. ResultsResults show that self-reported control variables have some effects on the relationship between saving attitudes and actual saving behavior, concurring with Ajzen's model of planned behavior, but only if income is high. ConclusionPositive and negative attitudes towards buying on instalment and credit card use are not correlated with saving attitudes or behavior.

Efforts to Overcome Cyber Crime Actions in Indonesia

The presence of the internet can penetrate the boundaries between countries and accelerate the spread and exchange of information throughout the world. Although there are many positive impacts of internet use, there are also negative impacts that disturb the community. One can easily become a criminal (cyber crime) only by creating blogs, accounts, applications, programs, sites in various mass media and social media to commit fraud, data theft, illegal use of credit cards, the spread of pornographic content, online gambling, online prostitution, hate speech, radicalism, terrorism and so on. To overcome crime in the virtual space, the government has issued Law No. 19 of 2016 concerning Amendments to Law No. 11 of 2008 concerning Information and Electronic Transactions. But not all internet users know and understand the substance of the law. Therefore, the government, employers and institutions that are engaged in information and communication technology have the responsibility to socialize the law to the public to prevent crime in the virtual space.

Materialism and compulsive buying behaviour

Purpose The purpose of this paper is to study the impact of materialism on credit card (CC) use and impulsive buying (IB) and compulsive buying (CB) behaviour. Furthermore, it assesses whether CC use and IB behaviour mediate the relationship between materialism and CB behaviour. Design/methodology/approach Data were collected from adult consumers with CCs via an online survey. For model assessment, a two-step approach was followed. First, a measurement model was created and tested using maximum likelihood estimation and validity of the study constructs was assessed. This was followed by structural equation modelling to test the hypotheses. Findings Materialism influences CC use and increases the propensity for IB (IB), which then precipitates CB habits. Reduction in CC use can decrease both IB and CB. Out of the six hypotheses assessed, only the one linking CC use to CB was not supported, requiring further investigation. Mediation relationships were identified, where CC use and IB act as mediators between materialism and CB. Research limitations/implications The paper captured responses from adult consumers of India. Hence, the findings may not be generalised across geographies and age groups. The study contributes to the debate on the impulsive–CB paradigm by showing that impulsive and CB are not distinct constructs. In fact, the former could lead to the latter. Practical implications CC use in itself need not necessarily lead to CB. The only way CC could cause CB is through IB. Hence, firms must promote responsible buying habits, as there has been an increase in IB, which, if not controlled, could lead to debt trap resulting from CB. The findings of this paper will help both retailers and CC institutions to better understand the spending pattern of consumers. Those will also help the policymakers to chalk out ways to the curb indiscriminate issuance of CCs without educating users. Originality/value The findings confirm that IB and CB exist on two ends of a continuum, and not as two distinct theoretical constructs. IB acts as a mediator between CC use and CB as well as between materialism and CB.

Youths Learn Responsible Use of Credit Cards

The need for youth credit card education is clear given the many statistics indicating increasing credit card debt and an overall scarcity of credit card education targeting youths. The Teen$ Credit Card simulation program offers youths an opportunity to experience "owning" a credit card, using it, and realizing the consequences of carrying a high balance from month to month. Participants have a chance to discover the benefits and detriments of using a credit card in a safe environment before potentially making mistakes in real life. University of Idaho Extension educators have presented this program to over 550 youths in a variety of settings, with evaluation results indicating self-assessed increases in knowledge and planned positive behavior changes.

College Student Financial Wellness: Student Loans and Beyond

Financial wellness is multidimensional, incorporating all aspects of a person’s financial situation, including their awareness of their financial situation, goal setting to maintain or improve their current financial situation, and the capability to put these goals into action. This review explores key aspects of college student financial wellness and financial behavior including use of credit cards and student loans, financial literacy, financial stress, and financial self-efficacy. This review also incorporates new information from the multi-institutional Study on Collegiate Financial Wellness, which adds depth to understanding of college student financial wellness in unique ways. Colleges and universities can and should contribute to the ongoing development of the financial capability of the college student population. To effectively plan and implement financial wellness initiatives on campus, understanding the needs of students on our campuses and how finances influence the day-to-day lives of students is critical.

THE RELATIONSHIPS OF SELF CONTROL AND NEUROTICISM PERSONALITY TENDENCY TO UNHEALTHY CREDIT CARD USAGE OF CAREER WOMEN IN SURABAYA

Everyone can experience stress especially career women. Their work problems can cause stress. Career women go shopping to reduce their stress. Then, credit card become their alternative payment method to pay. However, if the use of credit card is not properly managed, it can lead to unhealthy usage of credit card. This research will explore correlation between three variables there are self-control, neuroticism personality tendencies dan unhealthy usage of credit card. Total participants are 73 career women. Multiply correlation analysis shows self-control and neuroticism personality tendencies are related with unhealthy usage of credit card among career women in Surabaya (R=0.447 ρ=0.000); Partial correlation analysis shows (1) There is no relation between self-control and the unhealthy usage of credit card among career women in Surabaya (r=-0.266 ρ=0.024); (2) There is no relation between neuroticism personality tendencies and the unhealthy usage of credit card among career women in Surabaya (r=0.321 ρ=0.006).

Credit Card Transaction Validity Detection Using Density Based Clustering

The use of credit cards is increasing every year, causing abuse of credit card transactions is also increasing. The perpetrators of crime with credit card fraud are also increasingly sophisticated and have a wide network. This causes a loss for all parties. To detect credit card misuse in electronic transactions, the author tries to make research using Density Based Clustering approach (DBSCAN) to detect whether credit card number is valid or not. DBSCAN generally starts by setting the starting point randomly, then finding all the dots around in Eps the starting point distance, if the number of dots around is greater than or equal to MinPts then the cluster is formed, using density distributions from the dots in the database, DBSCAN can categorize the points into separate groups indicating different classes. It is hoped that by using DBSCAN Method in the decision making process can know the existence of misuse in the use of transaction with credit card. DBSCAN method in this research is used to help determine credit card problem in electronic transaction by using parameter of minimum point (minpts) and epsilon (eps). So it can be concluded whether the credit card is valid or not.

Merchant acceptance of cash and credit cards at the point of sale

Recent data show that the use of credit cards in Canada has been increasing, while the use of cash has been declining. At the same time, only two-thirds of small or medium-sized enterprises accept credit cards. To better understand the future development of this trend, it is important to study whether a change in merchant fees will increase credit card acceptance and thus further reduce cash use. To this end, this paper calculates the level of merchant fee where a merchant would be indifferent to accepting a credit card or cash payment, using the merchant indifference test. The study finds that the results are sensitive to the underlying assumptions. The paper also discusses the key issues of applying such a methodology to Canada.

Machine Learning Approaches for Credit Card Fraud Detection

With the extensive use of credit cards, fraud appears as a major issue in the credit card business. It is hard to have some figures on the impact of fraud, since companies and banks do not like to disclose the amount of losses due to frauds. At the same time, public data are scarcely available for confidentiality issues, leaving unanswered many questions about what is the best strategy. Another problem in credit-card fraud loss estimation is that we can measure the loss of only those frauds that have been detected, and it is not possible to assess the size of unreported/undetected frauds. Fraud patterns are changing rapidly where fraud detection needs to be re-evaluated from a reactive to a proactive approach. In recent years, machine learning has gained lot of popularity in image analysis, natural language processing and speech recognition. In this regard, implementation of efficient fraud detection algorithms using machine-learning techniques is key for reducing these losses, and to assist fraud investigators. In this paper logistic regression, based machine learning approach is utilized to detect credit card fraud. The results show logistic regression based approaches outperforms with the highest accuracy and it can be effectively used for fraud investigators.

Credit Cards, Consumer Credit, and Bankruptcy

This paper analyzes the effects of credit card use on broader economic indicators, specifically consumer credit, and consumer bankruptcy filings. Using aggregate nation-level data from Australia, Canada, Japan, the United Kingdom, and the United States, I find that credit card spending, lagged by 1-2 years, has a strong positive effect on consumer credit. Finally, I find a strong relation between credit card debt, lagged by 1-2 years, and bankruptcy, and a weaker relation between consumer credit, lagged by 1-2 years, and bankruptcy. The relations are robust across a variety of different lags and models that account for problems of multicollinearity and auto-correlation in the time series and include variables to control for the effects of economic cycles on bankruptcy and dummy variables to isolate nation-specific effects

The Effect of Onnuri Gift Certificate and Credit Card Use on the Performances of Small Business in Traditional Market

The Effect of Onnuri Gift Certificate and Credit Card Use on the Performances of Small Business in Traditional Market

Treasurer's Report November 2017

Treasurer's Report November 2017

How website quality affects online impulse buying

PurposeThe purpose of this paper is to investigate the impact of website quality on online impulse buying behavior (OIBB) in China, and assess the moderating roles of sales promotion and credit card use.Design/methodology/approachAn online and personal survey from 1,161 online shoppers belonging to three big cities of China – Beijing, Shanghai, and Nanjing – was conducted. A random sampling technique was utilized for data collection. Data were analyzed using validity and reliability tests, confirmatory factor analysis, and structural equation modeling.FindingsThree major findings discovered are: first, the website quality positively affects the OIBB; second, the sales promotion significantly influences OIBB and acts as a strong moderator on the relationship between website quality and online impulse buying; and third, the online impulse purchases are positively influenced by use of credit card, and the use of credit card enhances the relationship between website quality and online impulse buying.Research limitations/implicationsFirst, the website quality positively affects the OIBB; second, the sales promotion significantly influences OIBB and acts as a strong moderator in the relationship between website quality and online impulse buying; and third, online impulse purchases are positively influenced by credit card use. Moreover, credit card use enhances the relationship between website quality and online impulse buying.Originality/valueThis research is the first to investigate the relationship between website quality and OIBB in China, with sales promotion and credit card use as moderators.

Transforming Online Negative Blogs in the Use of Credit Cards in Electronics Transactions into Constructive Action: Basis of Creating Business Spend Analyzer Model

This exploratory qualitative research aimed at combining the negative perception of cardholders to negative blogs in using a credit card purchasing power in order to develop a new business model and spent analyzer, i.e., transforming online negative blogs in the use of credit cards in electronic transactions as basis for creating a business spend analyzer model. Specifically, it looked into the negative blogs posted by the credit card holders in terms of visa/master cards electronic business transactions, the analysis of negative blogs to produce a useful information for the visa and master cards holder, and the creation of business spend analyzer model. There were 1793 blogs considered and used in the study and 12 themes emerged namely; failure to transact payments, failure to reflect payments, failure to update, failure to give discounts, no reward points, excessive annual fees, failure to use, no cash out, too many calls, received threats, legal letters and experienced embarrassing situation. Based on the analysis of the online negative blogs, Semantia software had been used and revealed that the sentiment analysis is .024 and generally neutral, however its neutrality tends to be more into negative as the number of negative blogs is becoming more evident against the positive words. Modifying the model and removing the Acquirer entity can save the credit card holders in paying the hidden cost and can just be converted to savings. The used of spent analyzer is acceptable as it gradually allows the credit card holder to recover from the net of debt.

Financing Card Based on Murabahah Contract: The Legal Implications on a Credit Card

The development in the economic sector is influencing the development of banking products. One of the many products that is commonly used is credit card. In this context, The use of credit cards practically bring some problems that are reflected in the Islamic Law Perspective, especially because it does not specifically manage the credit cards according to Islam. It is different from the conventional credit cards that already have legal instruments clearly. Therefore, this study examines the legal implications in financing cards based on murabahah contract. This research is a normative legal research by analyzing the management of the Financing Card Based on Murabahah Contract. In order to help the analyses, this study uses the theory of Mаqаsid аl-syаri'аh and the theory of expediency (utility). The results that found related to the legal implications in financing cards based on murabahah contract can be reviewed from the relevancy to the theory of usefulness (utility). Credit cards as a modern means of payment, provide many conveniences and benefits in the midst of the rapid development of the business world. In addition, to address the use of credit cards based on usury, the Syariah Bank issued a Syariah Credit Card or Financing Card, this product must be based on the National Syariah Council Decision (Fatwa Majelis Ulama Indonesia) No.54 / DSN-MUI / 2006 on Syariah Card. Then in order to avoid legal implications that are not in accordance with syariah principles, from the aspect of the term that is used in Syariah, it is more appropriate to use the financing card term instead of credit card.

Factors Hindering the Adoption of Business-to-Consumer (B2C) in Developing Countries: A Case Study of Sudan

It has been commonly reported that e-commerce (electronic commerce) offers viable solutions to businesses in meeting the challenges of an environment that is undergoing changes. This study seeks to explore the factors that influence the adoption decision of Business-to-Consumer (B2C) e-commerce, using Sudan as a case study. The mixed method design was adopted in two stages in which both exploratory and descriptive research approaches were undertaken. Data was collected from enterprises by questionnaire and through the analysis of research and semi-structured interviews. The findings revealed that most enterprises in the country are still in the initial stages of adoption of B2C e-commerce despite the wide growth of Internet use among enterprises in Sudan. Many factors could be responsible for the low usage of e-commerce among the enterprises in Sudan. Technical barrier is seen as the major barrier that affects the adoption of B2C e-commerce. However, this is accompanied by regulatory and legal barriers. One of the factors that inhibit e-commerce adoption in SMEs in Sudan is the lack of Internet security. Other factors include limited use of web portals and Internet banking by enterprises. The use of credit card and visa card is prohibited in Sudan due to the sanction from the United States of America. However, these issues resulted in all type of transactions that involves carrying cash. This makes it risky for customer who carry huge sum of money. In order to improve B2C e-commerce adoption technologies, this study plays a significant role to organizations and supporting organizations, especially those operating in countries with a unique situation like Sudan.

Nivel de educación financiera en escenarios de educación superior. Un estudio empírico con estudiantes del área económico-administrativa

The present study aims to measure the level of financial education of young people who have already received formal instruction related to finances. 115 university students were surveyed during the last semester of the courses of the economic-administrative area of the Cristobal Colon University in Veracruz, Mexico. Financial education was measured following the methodology used by three financial institutions ( CONDUSEF, Banamex-UNAM and FINRA ) to evaluate the knowledge of young people about interest rate, inflation, savings, credit card use and budgeting .The results show that university students have the knowledge and habit of developing budgets to plan their expenses, but their level of financial education is very low compared to the rest of the variables that are evaluated.

The Relationship Between Credit Card Use Behavior and Household Well-Being During the Great Recession: Implications for the Ethics of Credit Use

This article uses a random digit dial probability sample (N = 328) to examine the relationship between credit card use behaviors and household well-being during a period of severe economic recession: The Great Recession. The ability to measure the role of credit card use during a period of recession provides unique insights to the study of credit behavior because of the knowledge that all respondents have the same macroeconomic constraint. Framed by the assumptions of the permanent income hypothesis and the life-cycle savings hypothesis, multinomial logistic regression was used to estimate the relationship between credit card use behaviors and three measures of household well-being: emotional well-being, financial well-being, and general household financial condition.

The Legal System for Credit Cards in Jordan

As a widely used banking service and application, credit cards have gained popularity in the last few years. They have broadened in techniques, impressions on clients and consumer transactions. Owing to the fact that masses are utilizing this facility, credit cards have become more popular, especially in Jordan. The lawmakers of the country have not yet updated the legal system according to the ongoing advancements through special laws. Such an update would pave the way for legal protection. This is an ongoing process, and people are currently experiencing legal dilemmas owing to the unlawful use of credit cards.

Public Perception on Cashless Transactions in India

After demonetization initiatives, most of the people in India started electronic payments for their transactions. Everyone from the small merchant to neighboring vegetable vendor is embracing digital payment solutions. Slowly India is moving from cash to cashless economy. A cashless economy is one in which all the transactions are done using cards or digital means. The circulation of physical currency is minimal in cashless economy. The benefits of Cashless economy are many. The increased use of credit cards will definitely reduce the amount of cash that people have to carry which reduces the risk and the cost associated with that. In this paper an attempt is made to examine the Public perception in India towards cashless transactions and the attempt is also made to identify the challenges faced by them during their transactions.