E arlier this year, several bills were introduced in Congress to curb what many consumer advocates have described as abusive credit card practices. These bills were intended to keep credit card issuers from penalizing consumers for paying their card balances in full each month. In unveiling one of the measures, Congressman John LaFalce declared, “[Consumers] should not be tricked or trapped int...

For many households, paying lower borrowing costs is the surest, fastest way to increase net worth. Using administrative, credit bureau and survey data on U.S. credit cards, we find pervasive and systematic cross-individual variation in borrowing costs. Credit risk and product differentiation explain about one-third of that variation. The remaining riskadjusted dispersion can materially affect ...

When a customer owns multiple credit cards, the selection of a credit card for a purchase payment is rarely done systematically. Furthermore, the customer has no online options to pay a high cost item with multiple cards. This paper presents a flexible Payment Recommender (PR) system that helps the customer to make a decision on identifying a group of credit cards, called Virtual Card, which pr...

In the retail industry, consumer credit is sometimes seen as a dangerous parasite that can become bigger than its host. Credit cards are marketing devices that aim at easing the attachment between consumers and goods. Credit cards are also value meters that trace every single transaction. Credit cards can even be “gardening” tools. Sowing is the name used in Chile’s retail industry to call the ...

Recent U.S. antitrust litigation and concerns by regulatory authorities over fees in Australia and the European Union have questioned the nature of various bilateral relationships and associated fees underlying credit card transactions. A two-period model is constructed to study the interactions among consumers, merchants, and a card issuer. The model yields the following results. First, if the...

Credit and debit cards have spread and skyrocketed all around the world to become the most popular means of payments in many countries. Despite their enormous popularity, cards are not free of risk. Technology development and e-commerce have exponentially increased internal credit card incidents. This paper identifies and quantifies the different types of credit card fraud and puts into questio...

The rate of households filing for personal bankruptcy soared in the past two decades, spurring extensive investigations on its causes and policy implications. Recent research suggests that the driving factor may be the sharp decrease in the cost of providing credit, especially unsecured credit cards, to the borrowers that would be not served by traditional lenders (e.g., Livshits, MacGee, and T...

The aim of this paper is to detect bank credit cards related frauds. The large amount of data and their similarity lead to a time consuming and low accurate separation of healthy and unhealthy samples behavior, by using traditional classifications. Therefore in this study, the Adaptive Neuro-Fuzzy Inference System (ANFIS) is used in order to reach a more efficient and accurate algorithm. By com...