Who Gains and Who Loses from Credit Card Payments?

Who Gains and Who Loses from Credit Card Payments?
By:"Scott Schuh"
Published on 2010-11 by DIANE Publishing

Merchant fees and reward programs generate an implicit monetary transfer to credit card users from non-card (or ¿cash¿) users because merchants generally do not set differential prices for card users to recoup the costs of fees and rewards. On average, each cash-using household pays $151 to card-using households and each card-using household receives $1,482 from cash users every year. The payment instrument transfer also induces a regressive transfer from low-income to high-income households in general. The authors build and calibrate a model of consumer payment choice to compute the effects of merchant fees and card rewards on consumer welfare. Reducing merchant fees and card rewards would likely increase consumer welfare.

This Book was ranked 19 by Google Books for keyword credit card.