Estimating Recovery Rate and Recovery Amount has become important in consumer credit because of the new Basel Accord regulation and because of the increase in number of defaulters due to the recession. We compare linear regression and survival analysis models for modelling Recovery rates and Recovery amounts, so as to predict Loss Given Default (LGD) for unsecured consumer loans or credit cards...

Today, prepaid cards are used in dozens of payment applications. To examine the most recent developments, the Payment Cards Center of the Federal Reserve Bank of Philadelphia hosted a workshop on August 22, 2011. Leading the workshop was Tim Walsh, president and chief executive officer of Ready Credit Corporation, a firm that developed network-branded prepaid cards for use in transit-fare syste...

Credit cards have many important benefits; however, these same benefits often carry with them many privacy concerns. In particular, the need for users to be able to monitor their own transactions, as well as bank’s need to justify its payment requests from cardholders, entitle the latter to maintain a detailed log of all transactions its credit card customers were involved in. A bank can thus b...

a r t i c l e i n f o The paper makes four contributions. First, the paper provides new data and findings about credit card usage seg-mentation in respect to spending and borrowing behavior. Second, it sets the new findings against the backdrop of the newly emerging literature on financial literacy. A great variability occurs in financial literacy across American consumers. Third, the paper des...

Due to a rapid advancement in the electronic commerce technology, the use of credit cards has dramatically increased. As credit card becomes the most popular mode of payment for both online as well as regular purchase, cases of fraud associated with it are also rising. In this paper, we model the sequence of operations in credit card transaction processing using a Hidden Markov Model (HMM) and ...

Artificial intelligence techniques have been successfully applied to the underwriting of credit risk products such as credit cards and loans, but not to the underwriting of casualty risk. Techniques in data mining and neural networks provide an efficient and effective method for creating a decision-aiding tool for underwriters. A web-based back propagation program will increase the accessibilit...

This work presents the segmentation of credit cards holders of a Portuguese financial institution. It is focused on the evaluation of the obtained solution via cross-validation. The proposed approach specifically handles a large data set with mixed (numerical and categorical) variables. It provides the evaluation of the internal stability of the segmentation solution and helps in characterizing...

Consumers’ ability to purchase goods and services from anywhere and at any time is a critical factor in the ubiquity of e-commerce. Credit cards enable a medium of exchange that facilitates the global e-commerce marketplace. Credit card providers’ and bank account service sites provide powerful tools for the individual to manage their credit card accounts, and allowing payment of monthly credit...

As life becomes more and more convenient with all sorts of high-techs around, traveling has become more and more popular. Travelers nowadays can choose to use either common metallic/paper currency or credit cards to pay their bills. However, money in pockets or wallets/purses is subject to being robbed of, while credit cards are at the risk of being cloned. The traveler’s check, which is a thir...

Taxicabs are a critical aspect of the public transit system in New York City. The yellow cabs that are ubiquitous in Manhattan are as iconic as the city’s subway system, and in recent years green taxicabs were introduced by the city to improve taxi service in areas outside of the central business districts and airports. Approximately 500,000 taxi trips are taken daily, carrying about 800,000 pa...