With the rise and swift growth of E-Commerce, credit card uses for online purchases has increased dramatically and it caused sudden outbreak in the credit card fraud. Fraud is one of the major ethical issues in the credit card industry. With both online as well as regular purchase, credit card becomes the most popular mode of payment with cases of fraud associated with it are also increasing. A...

The smart card has a microprocessor or a memory chip embedded in a plastic card. It has been in wide use in Europe and Japan for payment, entry into buildings and computer systems, and storage and access of special types of information. In the US, despite efforts by the credit card industry, the smart card has not been nearly as widely adopted as in Europe and Japan. In this article, we will re...

Several of the nation’s largest payment-card-issuing banks are working with public transit agencies to enable consumers to pay fares by using payment cards, and more such partnerships may be on the horizon. On April 23, 2009, the Payment Cards Center of the Federal Reserve Bank of Philadelphia hosted a workshop to discuss the potential adoption of electronic payments by transit agencies from th...

Due to the impact of online payment on the development of e-commerce, this article seeks to deepen the current understanding about the determinants of online payment method choice. Based on an extensive literature review, we identified perceived trustworthiness of the seller and perceived product uncertainty as major determinants, and we theorize that product type, product price, and product de...

Vehicular ad hoc networks (VANETs) are envisioned to support the development of a wide range of attractive applications such as payment services which require the design of payment systems that satisfy additional requirements associated with VANETs. The wide range of scenarios (with or without connectivity restriction) arising from vehicle-to-vehicle and vehicle-to-roadside communications have ...

This paper presents a model of a debit or credit card payment scheme, providing a simple determination of the socially optimal structure of fees between those charged to cardholders and those charged to merchants.  2003 Elsevier B.V. All rights reserved.

This paper theoretically considers the optimal balance between the merchant fee and the cardholder fee (rewards) from both efficiency and equity perspectives. First, the paper constructs the models that can be used by the U.S. policymakers. Because theoretical results are very sensitive to the assumptions of the models, it is important to construct models that reflect the reality of the market....

Antitrust authorities often argue that merchants cannot reasonably turn down payment cards and therefore must accept excessively high merchant discounts. The paper attempts to shed light on this “must-take cards” view from two angles. First, the paper gives some operational content to the notion of “must-take card” through the “avoided-cost test” or “tourist test”: would the merchant want to re...

VarietyCash is a new electronic money system which strikes a balance between functionality, security, and user privacy. The system can encompass both network and stored-value card based payment mechanisms, with transferability between them, hence the name.

Cost-efficient processing and low working capital requirements are highly important for online retailers’ competitiveness and profitability. Therein, a sound understanding of transaction costs of respective payment instruments is extremely relevant when deciding which payment method to offer in ecommerce. Using a unique dataset with more than 14 million actual sales transactions from a leading ...