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How Merchants Get Paid

Author

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  • Oz Shy

Abstract

Using a representative sample of actual payments made by adult U.S. consumers, this article analyzes the composition of payment methods consumers use to pay for goods and services. Consumer spending is divided into 21 main merchant categories. Results show the distributions of electronic, card, and paper payment methods and the degree of payment concentration for each merchant category.

Suggested Citation

  • Oz Shy, 2020. "How Merchants Get Paid," Consumer Payments Research Data Reports 2020-02, Federal Reserve Bank of Atlanta.
    • Handle: RePEc:fip:fedadr:99786
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    References listed on IDEAS

    as
    1. Klee, Elizabeth, 2008. "How people pay: Evidence from grocery store data," Journal of Monetary Economics, Elsevier, vol. 55(3), pages 526-541, April.
    2. Naoki Wakamori & Angelika Welte, 2017. "Why Do Shoppers Use Cash? Evidence from Shopping Diary Data," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 49(1), pages 115-169, February.
    3. Oz Shy, 2021. "Consumer Use of Multiple Payment Methods," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 58(3), pages 339-355, May.
    4. Curry, B & George, K D, 1983. "Industrial Concentration: A Survey," Journal of Industrial Economics, Wiley Blackwell, vol. 31(3), pages 203-255, March.
    5. Wang, Zhu & Wolman, Alexander L., 2016. "Payment choice and currency use: Insights from two billion retail transactions," Journal of Monetary Economics, Elsevier, vol. 84(C), pages 94-115.
    6. David Hao Zhang, 2016. "How Do People Pay Rent?," Consumer Payments Research Data Reports 2016-02, Federal Reserve Bank of Atlanta.
    7. David Hao Zhang, 2016. "How do people pay rent?," Research Data Report 16-2, Federal Reserve Bank of Boston.
    8. D. Bounie & A. Francois, 2011. "The economics of bill payments: an empirical analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 18(10), pages 961-966.
    9. Arango, Carlos & Huynh, Kim P. & Sabetti, Leonard, 2015. "Consumer payment choice: Merchant card acceptance versus pricing incentives," Journal of Banking & Finance, Elsevier, vol. 55(C), pages 130-141.
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    Citations

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    Cited by:

    1. Claire Greene & Joanna Stavins, 2021. "2020 Diary of Consumer Payment Choice," Consumer Payments Research Data Reports 2021-02, Federal Reserve Bank of Atlanta.
    2. Claire Greene & Joanna Stavins, 2020. "2019 Diary of Consumer Payment Choice," Consumer Payments Research Data Reports 2020-04, Federal Reserve Bank of Atlanta.

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    More about this item

    Keywords

    payment methods; payment instruments;

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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