Unusual price-volume relationships in transaction pricing for payment cards

Eric Dunn

Journal of Payments Strategy & Systems, 2007, vol. 1, issue 3, 273-281

Abstract: This paper documents a number of instances where the volume of credit and debit transactions shows unusual elasticity with respect to price — either falling as prices fall, or increasing as prices increase. It explores these cases by analysing payment transaction volumes in three countries with broadly similar economies: the USA, the UK and Australia. A conclusion is reached that the anomalies are genuine, and a hypothesis is presented to account for the anomalous relationship between price and volume. Payment instruments studied include credit cards and debit cards, drawing from primary materials published by the US Federal Reserve, the Nilson Report, the Reserve Bank of Australia, the Bank of England and APACS.

Keywords: payments; transaction pricing; debit; credit; US; UK; Australia (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/3459/download/ (application/pdf)
https://hstalks.com/article/3459/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:jpss00:y:2007:v:1:i:3:p:273-281

Access Statistics for this article

More articles in Journal of Payments Strategy & Systems from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().