This paper sets out to estimate expected lifetime of revolving credit facilities (e.g. credit card products) and is motivated by the introduction of the International Financial Reporting Standard 9 (IFRS 9) and its requirements for loan impairments. The reporting entity is required to estimate lifetime expected credit losses for certain financial instruments. In practice, maximum contractual pe...

Ž . MasterCard International and VISA International recently proposed the Secure Electronic Transaction SET protocol. Constrained by being an extension of the existing card payment networks to the Internet, SET does not satisfy the concern about privacy infringement, in particular, caused by data aggregation. This paper revises SET, guided by the principle of information segregation and hiding....

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 ...

Debit cards have become an indispensable part of the U.S. payments system, accounting for more than a third of consumer payments at point of sale. With this development has come controversy: Card networks charge merchants fees that merchants believe are too high. And most of the fees are ad valorem—that is, based on transaction value—rather than fixed fees per transaction. Merchants are critica...

Online payments in business-to-consumer electronic commerce are mainly made with credit cards. Fraud and chargebacks are a significant issue for merchants and payment card brands, due to widespread use of unsecured or partially secured credit card transactions. The Secure Electronic Transaction (SET) protocol may not only provide a high security level. It also enables productivity improvements ...

FX&MM MAY ISSUE 2010 To subscribe online visit: www.fx-mm.com REVERSE FACTORING – BENEFITS FOR ALL A growing number of transaction banks are implementing supplier finance programmes for their large credit-worthy customers who wish to support their supply chain partners. Reverse factoring is the most popular model, enabling banks to provide suppliers with finance at a lower cost than they would ...

Every year billions of Euros are lost worldwide due to credit card fraud. Thus, forcing financial institutions to continuously improve their fraud detection systems. In recent years, several studies have proposed the use of machine learning and data mining techniques to address this problem. However, most studies used some sort of misclassification measure to evaluate the different solutions, a...

The decentralized I owe you (IOU) transaction network Ripple is gaining prominence as a fast, lowcost and efficient method for performing same and crosscurrency payments. Ripple keeps track of IOU credit its users have granted to their business partners or friends, and settles transactions between two connected Ripple wallets by appropriately changing credit values on the connecting paths. Simi...