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Payment instrument choice: the case of prepaid cards

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Author Info
Sujit Chakravorti
Victor Lubasi

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Abstract

The costs and benefits to payment system participants can differ depending on which payment mechanism is used. The authors specifically explore the costs and benefits of prepaid card applications versus other payment instruments, such as cash, checks, and debit cards, for certain payment segments, including gift, payroll, and employer-initiated and government benefit programs.

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File URL: http://www.chicagofed.org/publications/economicperspectives/ep_2qtr2006_part3_chakravorti_Lubasi.pdf
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Publisher Info
Article provided by Federal Reserve Bank of Chicago in its journal Economic Perspectives.

Volume (Year): (2006)
Issue (Month): Q II ()
Pages: 29-43
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:fip:fedhep:y:2006:i:qii:p:29-43:n:v.30no.2

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Related research
Keywords: Payment systems;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Humphrey, David B., 2004. "Replacement of cash by cards in US consumer payments," Journal of Economics and Business, Elsevier, vol. 56(3), pages 211-225. [Downloadable!] (restricted)
  2. Whitesell, William C, 1992. "Deposit Banks and the Market for Payment Media," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 24(4), pages 483-98, November. [Downloadable!] (restricted)
  3. Sujit Chakravorti & Emery Kobor, 2003. "Why invest in payment innovations?," Emerging Issues, Federal Reserve Bank of Chicago, issue Jun. [Downloadable!]
  4. Sujit Chakravorti & Carrie Jankowski, 2005. "Forces shaping the payments environment: a summary of the Chicago Fed’s 2005 Payments Conference," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Oct. [Downloadable!]
  5. Sujit Chakravorti & Erin Davis, 2004. "An electronic supply chain: will payments follow?," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Sep. [Downloadable!]
  6. Rolnick, Arthur J. & Weber, Warren E., 1988. "Explaining the demand for free bank notes," Journal of Monetary Economics, Elsevier, vol. 21(1), pages 47-71, January. [Downloadable!] (restricted)
  7. Arthur J. Rolnick & Warren E. Weber, 1988. "Explaining the demand for free bank notes," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Spr, pages 21-35. [Downloadable!]
  8. Stacey L. Schreft, 1997. "Looking forward : the role for government in regulating electronic cash," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 59-84. [Downloadable!]
  9. Eugene Amromin & Carrie Jankowski & Richard Porter, 2006. "Inducing more efficient payment on the Illinois Tollway," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Apr. [Downloadable!]
  10. Shy, Oz & Tarkka, Juha, 2002. "The Market for Electronic Cash Cards," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 34(2), pages 299-314, May.
    Other versions:
  11. Anthony M. Santomero & John J. Seater, 1996. "Alternative monies and the demand for media of exchange," Proceedings, Board of Governors of the Federal Reserve System (U.S.), pages 942-964.
    Other versions:
  12. Victor Lubasi, 2005. "Debit card competition: signature versus pin," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Dec. [Downloadable!]
  13. Chakravorti, Sujit & To, Ted, 2007. "A theory of credit cards," International Journal of Industrial Organization, Elsevier, vol. 25(3), pages 583-595, June. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Wilko Bolt & Sujit Chakravorti, 2008. "Economics of Payment Cards: A Status Report," DNB Working Papers 193, Netherlands Central Bank, Research Department. [Downloadable!]
  2. Eugene Amromin & Sujit Chakravorti, 2007. "Debit card and cash usage: a cross-country analysis," Working Paper Series WP-07-04, Federal Reserve Bank of Chicago. [Downloadable!]
  3. Wilko Bolt & Sujit Chakravorti, 2008. "Economics of payment cards: a status report," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q IV, pages 15-27. [Downloadable!]
  4. Carrie Jankowski & Richard Porter & Tara Rice, 2007. "Against the tide—currency use among Latin American immigrants in Chicago," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q II, pages 2-21. [Downloadable!]
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This page was last updated on 2009-11-18.


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