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Transaction costs to retailers of different methods of payment: Results of a pilot study
Author(s) -
Grant Robert M.
Publication year - 1983
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090040206
Subject(s) - credit card , cheque , payment , cash , sample (material) , business , transaction cost , database transaction , actuarial science , principal (computer security) , finance , computer science , database , computer security , chemistry , chromatography
Do credit card transactions cost the retailer substantially more than other forms of payment? This question was central to a study of the relative costs of cash, cheque, credit card and credit account transactions to retailers in the United Kingdom. The study identifies the principal cost elements and provides quantitative estimates based upon a pilot sample. The costs of accepting credit card and providing credit accounts were found to depend crucially upon the generation of additional sales by these forms of payment.