Determinants of Merchant Participation in Credit Card Payment Schemes

Yiing Jia Loke ()

Review of Network Economics, 2007, vol. 6, issue 4, 21

Abstract: This paper aims to empirically establish the determinants of merchant participation in credit card payment schemes. It is found that a merchant's personal background, type of business and total value of sales are significant in determining a merchant's acceptance of cards in payment transactions. Further, it is found that customers' usage of credit cards and other merchants' acceptance of credit cards in payments have a significant influence on a merchant's decision. Findings also indicate that non-pecuniary strategic factors are stronger drivers and barriers to a merchant's participation in credit cards payments services compared to monetary related factors.

Date: 2007
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DOI: 10.2202/1446-9022.1130

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