Credit Card Rewards: a Response to Who Gains and Who Loses

نویسنده

  • Steven Semeraro
چکیده

or two decades, economic and legal academics have speculated about the impact of the fees that merchants pay for credit card acceptance. Since all customers pay the same price, the theory goes, everyone pays for the benefits that go only to credit card users. A recent Federal Reserve Bank of Boston (FRBB) policy paper written by economists Scott Schuh, Oz Shy, and Joanna Stavins entitled Who Gains and Who Loses from Credit Card Payments? Theory and Calibrations has taken the argument a step further, contending that credit card programs reduce consumer welfare by transferring money from low-income households that purchase goods and services with payment

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منابع مشابه

Who Gains and Who Loses from Credit Card Payments? Theory and Calibrations

Scott Schuh, Oz Shy, and Joanna Stavins Abstract: 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 rec...

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تاریخ انتشار 2012