Charging Ahead: The Growth and Regulation of Payment Card Markets

Cover......Page 1
Half-title......Page 3
Title......Page 5
Copyright......Page 6
Contents......Page 7
Figures and Tables......Page 9
Acknowledgments......Page 11
Introduction......Page 13
Part I The Basics of Payment Cards......Page 19
Cash and Noncash Systems......Page 21
Paper and Electronic Systems......Page 23
In-Person and Remote Payments......Page 26
Universal and Networked Payment Systems......Page 27
Developing Payment Systems......Page 28
The Credit Card Transaction......Page 32
The Debit Card Transaction......Page 40
Consumer Confusion......Page 44
Part II Easy Money......Page 47
Paying with Credit Cards......Page 49
Borrowing with Credit Cards......Page 52
Cards and Spending......Page 57
Cards and Financial Distress......Page 61
A Look at the Data......Page 63
Card Spending and Consumer Debt Levels......Page 64
A Note on Credit Card Use and Savings......Page 66
A Credit Card Debt and Consumer Debt......Page 68
C Credit Card Debt, Credit Card Spending, and Consumer Debt......Page 69
D Cards Variables, Macroeconomic Variables, and Consumer Debt......Page 70
E Cards Variables and Savings......Page 71
Data Problems......Page 72
Results......Page 76
Implications......Page 79
Summing Up......Page 81
A Credit Card Debt and Bankruptcy......Page 82
C Credit Card Debt, Credit Card Spending, Consumer Debt, and Consumer Bankruptcy......Page 83
Part III The Puzzle of Payment Cards......Page 85
Variations in the Pattern of Usage......Page 87
Explaining the Pattern......Page 90
7 The Introduction of the Payment Card......Page 93
8 Revolving Credit......Page 98
Comparative Origins......Page 105
Unraveling Substitution Issues......Page 108
Inhibitors of Payment Card Use......Page 114
10 Convergence and Exceptionalism in the Use of Cards......Page 118
The Unimpeded Global Norm......Page 119
Data Protection as a Speed Bump to Globalization......Page 125
Divergence and Convergence......Page 129
Part IV Reforming Payment Systems......Page 131
The Network/Merchant Interface: Interchange......Page 133
The Merchant/Cardholder Interface: Encouraging Surcharges......Page 134
The Limits of Indirect Approaches......Page 138
12 Contract Design......Page 140
Context......Page 143
Ramifications......Page 146
Solutions to the Contracting Problem......Page 151
Running in Place......Page 153
Moving Forward......Page 155
13 Regulating Information......Page 166
Information Campaigns and Advertising......Page 167
Disclosures......Page 171
Disclosure at the Point of Borrowing......Page 172
Disclosure at the Point-of-Sale......Page 173
Segmenting Payment/Credit Functions......Page 177
Affinity and Rewards Programs......Page 179
Teaser Rates......Page 183
Part V Optimizing Consumer Credit Markets and Bankruptcy Policy......Page 187
15 Causation, Consumer Credit, and Bankruptcy......Page 191
From Borrowing to Bankruptcy......Page 193
From Bankruptcy to Borrowing......Page 194
On Stigma......Page 197
16 Regulating Consumer Credit Markets......Page 200
Usury Regulations......Page 201
Minimum Payments......Page 205
Taxing Distressed Debt......Page 207
17 Consumer Bankruptcy Reform......Page 210
Conclusion......Page 219
Appendix: Country-Level Data......Page 221
2. The Mechanics of Payment Card Transactions......Page 253
4. The Psychology of Card Payments: Card Spending and Consumer Debt......Page 254
5. Over the Brink: Credit Card Debt and Bankruptcy......Page 256
7. The Introduction of the Payment Card......Page 257
8. Revolving Credit......Page 258
9. Point-of-Sale Debit......Page 259
10. Convergence and Exceptionalism in the Use of Cards......Page 261
11. Indirect Approaches: Regulating Interchange and Encouraging Surcharges......Page 263
12. Contract Design......Page 265
13. Regulating Information......Page 271
15. Causation, Consumer Credit, and Bankruptcy......Page 275
16. Regulating Consumer Credit Markets......Page 278
17. Consumer Bankruptcy Reform......Page 279
Federal Statutes and Regulations......Page 283
State Statutes......Page 284
Books, News Stories, Periodicals, and Other Materials......Page 285
Web Sites......Page 299
Index......Page 301