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Determinants of Merchant Participation in Credit Card Payment Schemes

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  • Loke Yiing Jia

    ()
    (School of Social Sciences, Universiti Sains Malaysia)

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.

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File URL: http://www.degruyter.com/view/j/rne.2007.6.4/rne.2007.6.4.1130/rne.2007.6.4.1130.xml?format=INT
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Bibliographic Info

Article provided by De Gruyter in its journal Review of Network Economics.

Volume (Year): 6 (2007)
Issue (Month): 4 (December)
Pages: 1-21

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Handle: RePEc:bpj:rneart:v:6:y:2007:i:4:n:3

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Cited by:
  1. Carbó Valverde Santiago & Liñares-Zegarra José Manuel, 2009. "How Effective Are Rewards Programs in Promoting Payment Card Usage? Empirical Evidence," Working Papers 201059, Fundacion BBVA / BBVA Foundation.
  2. Nicole Jonker, 2011. "Card acceptance and surcharging: the role of costs and competition," DNB Working Papers 300, Netherlands Central Bank, Research Department.
  3. Fennee Chong Author_Email: fenneechong@sarawak.uitm.edu.my, 2011. "Credit Card Dues," Annual Summit on Business and Entrepreneurial Studies (ASBES 2011) Proceeding 2011-016-137, Conference Master Resources.

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