Debit and credit card usage and satisfaction

In this paper we examine consumer attitudes towards a payment method, which is a key factor affecting the probability of completing a transaction offline and online. More specifically, we constructed a model that surveyed the offline and online usage of prepaid e-cash, debit cards, credit cards and cash. User perceptions of the attractiveness of e-cash and various traditional payment means were also empirically assessed. Consumer attitudes towards a payment technology were found to be influential on users' perceptions in both online and offline environments. User perceptions of offline purchases with a payment technology had significant and positive effects on the corresponding online usage perceptions. The effects of our research model are contingent on the income level of users. Our findings have significant implications, as they could help shed light on why consumers abandon their shopping carts and do not complete their transactions, which could potentially play a significant role when it comes to designing applications targeting sspecific consumer segments.

In the current market, usage of e-payment has been dominant instead of the physical cash payment method. Money is transferred out from a bank account using a debit card, credit card, or online banking to pay people using the e-wallet, offering the effortlessness of a cashless payment method. The Internet turned out to be the pillar technology, particularly for the retail industry, electronic payments, mobile payments, and banking systems initiated to develop. Beforehand, cashless transactions are just individuals making payments by using debit or credit cards, which are the main initiative of the development of banking system technology. Due to the era of globalization, the utilization of banking system technology between banks and third parties, debit, and credit debit cards can also be considered e-payments. The study's objectives are to identify the effect of perceived compatibility, social influences, personal innovativeness, and facilitating conditions on customer intentions among working adults who use mobile phones for e-payment in Klang Valley. This research shows that the use of the UTAUT model is helpful to assist academicians and marketers as a further research purpose to understand the consumer’s intention towards the acceptance of new technology which is e-payments. From this study, the finding shows that positive sign which is seen across the independent variables of social influence perceived compatibility, and facilitating condition. There is no relationship between personal innovativeness and customers’ intention to use mobile phones for e-payment in Klang Valley. Quantitative data had been obtained through the distribution of online questionnaires to 384 targeted respondents as part of the methodology of this research. In this study, three data analysis models have been applied in data analysis descriptive analysis, multiple linear regression, and Pearson correlation coefficient analysis. The survey was analysed through SPSS version 27.

Using data from the United States and Canada, we quantify consumers’ net pecuniary cost of using cash, credit cards, and debit cards for purchases across income cohorts. The net cost includes fees paid to financial institutions, rewards received from credit or debit card issuers, and the merchant cost of accepting payments that is passed on to consumers as higher retail prices. Even though credit cards are more expensive for merchants to accept compared with other payment methods, merchants typically do not differentiate prices at checkout, but instead pass through their costs to all consumers. As a result, credit card transactions are cross-subsidized by cheaper debit and cash payments. Card rewards and consumer fees paid to financial institutions are additional sources of cross-subsidies. We find that consumers in the lowest-income cohort pay the highest net pecuniary cost as a percentage of transaction value, while consumers in the highest-income cohort pay the lowest. This result is robust under various scenarios and assumptions, suggesting payment card pricing and merchant cost pass-through have regressive distributional effects in the United States and Canada.

There has been extensive discourse on the topic of cashless payments, and their global adoption has witnessed exponential growth in recent years. Cash transactions pose certain challenges, notably the impracticality of managing physical currency and the restricted accessibility of financial institutions to withdraw cash. Multiple research studies have affirmed the positive influence of cashless payments on economic growth, thus highlighting their crucial significance. The present study aims to examine the effects of cashless payments on the economy of Sri Lanka. In particular, the investigation focuses on the measurement of economic growth using the real Gross Domestic Product (GDP), and the analysis of cashless payment systems through the employment of Real-time Gross Settlement System (RTGS), Cheque (CHE), Sri Lanka Interbank Payment System (SLIPS), and Internet Banking (IB), Mobile Banking (MB), Credit Card (CC), Debit Card (DC) transactions as representative indicators. The data utilized in this study is based on secondary sources in the form of time series data, spanning from quarter 01 of 2015 to quarter 3 of 2022. The AutoRegressive Distributed Lag (ARDL) model is then employed for the purpose of data analysis. Upon conducting an analysis of the long-term impact of various payment methods on economic growth, it is determined that RTGS (94% of total digital transaction) and SLIPS have a statistically significant positive relationship with economic growth. Conversely, IB exhibits a significant negative relationship which requires targeted improvements. Notably, there is no significant impact on economic growth observed with respect to the CHE, CC, DC, and MB indicating the need for technological advancements and integration. In the short run, it can be inferred that there is a significant positive correlation between RTGS, CHE, IB, and MB. Conversely, the analysis indicates a significant negative relationship between the SLIPS and DC payment methods. It is worth noting that the analysis does not reveal any significant association between the CC payment method and economic growth. Hence, this study conclude that digital currencies have on overall positive impact on short and long run in Sri Lankan economic growth and highlights the importance of prioritizing efficient payment systems that foster the economic growth while addressing the challenges with less effective methods. Policy makers and financial institutions can enhance the efficiency of payment ecosystems, ultimately driving sustainable economic growth.

The Indian tourism industry has seen tremendous change as a result of the quick development of social media and digital payment methods, which have an impact on visitor behavior, service quality, and business results. This study looks at how social media sites and online payment methods affect India’s tourism industry. In the Indian tourism sector, digital payment systems have become an essential component that improves the ease, effectiveness, and transparency of travel-related transactions. Travel, hospitality, transportation, and related services are increasingly adopting digital payments due to the rapid growth of smartphones, internet connectivity, and government initiatives like Digital India, Unified Payments Interface, and cashless economy campaigns. The significance of digital payment systems in Indian tourism is highlighted in this study, with a focus on how they affect visitor satisfaction, operational effectiveness, financial inclusion, and business performance. Using zWate s statistical methods, the data was examined and the relationships between social media use, the adoption of digital payments, and tourism performance were evaluated. The findings show that tourism stakeholders are well-versed in social media tactics, emphasizing the value of sites like Facebook, Instagram, and travel review sites for customer interaction, itinerary planning, and destination expertise. Due to their ease of use, speed, and security features, digital payment methods like UPI, mobile wallets, debit cards, and credit cards are also very popular, according to the survey. These digital payment methods have a beneficial impact on customer satisfaction and service effectiveness, but social media also has a significant impact on how tourists perceive, trust, and intend to make purchases. According to the study’s findings, the Indian tourist industry may successfully improve long-term growth, competitiveness, and consumer satisfaction by combining social media strategies with digital payment systems.

This article explores the sociality of digitised money transactions in the use of credit and debit cards in New Delhi. The article draws from insights in Science and Technology Studies (STS) and uses ethnographic practices to capture the complexity of digital money usage. The findings suggest that digital money and its required technological infrastructure do not operate as neutral interventions. Rather, credit cards and consumer behaviour are generated by and implicated in a range of cultural codes and practices, such as contexts for debt vulnerability and fraud. Courts, banks and the government currently appear to be behind the regulatory curve for managing these transactions which clearly seem to outpace the existing legal capacities in India. Significantly, it also emerges that credit card usage, consumer debt and digital frauds need to be grasped as linked phenomena. Money and technology, hence, I argue, operate in sociologically and politically charged contexts.

Financial industry data indicate that consumers increasingly prefer debit cards over credit cards, especially as a means of enforcing financial self-discipline. Given prior research suggesting that credit cards act as spending facilitating stimuli, this move toward reduced credit card use would appear to be in the right direction. Ironically, however, the same logos that were implicated in facilitating spending with credit cards are the logos that appear on debit cards. In what should serve as an eye-opener to consumers, it is found that exposure to debit card logos does result in an increased willingness to spend, similar to credit cards.

This study analyzed consumer public complaint behaviors and the satisfaction of complaint handling among credit card users who availed of credit card services. Relatively little research has been done in this area, despite the obvious importance of understanding and improving credit card market conditions. The purpose of this study was to examine consumer compliant behaviors with a focus on public actions, such as voice responses and the third party actions among credit card users. With the goal of providing consumers with more positive expectations of credit card companies' complaint handling process, this study investigated the status of public actions and the negative effect of complaints on the overall satisfaction of post-complaint behavior toward credit card services. The responses from 1,000 credit card users were analyzed using descriptive analysis, factor analysis, multi-logit analysis, and Heckman selection estimate. The analysis provided three major results: (1) perceived service quality among credit card users was conceptualized into groups such as responsiveness, innovation, company, additional service, and fee, (2) perceived service qualities, age, residential area, employment status, and subjective economic status had significant effect on public compliant action behaviors, and (3) unidimensional factors resulting from post-complaint behaviors were analyzed and several variables, such as period of credit card use, average amount used, and perceived service quality had significant effects on the degree of satisfaction associated with complaint handling in terms of credit card services. Several implications and directions for further research are discussed.

Satisfaction with banking services is an area of growing interest to researchers and managers.This research examined the survey responses of 120 bank customers who provided information regarding their satisfaction towards financial distribution channels with respect to their banks. The study found that there were distinctive segments within the financial market that had significantly different levels of usage of financial distribution channels. Financial customers’ satisfaction with Mobile banking, automated teller machines, credit cards, debit cards, internet banking was investigated, and this information was used to determine if relationships exist between customer satisfaction and the usage of financial distribution channels. Systematic methodology, including design and validation of questionnaire and factor analysis were used to enhance the reliability of the findings. Further results and implications of the study for financial services are addressed.

The objective of this study is to analyze the effect of transaction values using cards (Card Payment Instruments/APMK), namely credit cards and debit cards, as well as float funds on the Velocity of Money (VOM) in Indonesia. This study employs a quantitative approach using descriptive methods, utilizing secondary data on credit card transaction values, debit card transaction values, float funds, and VOM over the period 2015–2024. The data sources were obtained from the official websites of the Bank of Indonesia (BI) and the Central Statistics Agency (BPS). The analysis method employed is the Error Correction Model (ECM) to observe short-term and long-term dynamics. The findings of the study suggest that, over an extended period, credit card transaction values (KK) and float funds (DF) exert a positive and significant influence on VOM, while debit card transaction values (KD) prove to be statistically insignificant. In contrast, in the short term, float funds (D(DF)) exert a negative and significant influence on changes in VOM, while changes in credit cards (D(KK)) and debit cards (D(KD)) do not demonstrate a statistically significant effect. Furthermore, the lagged value of credit cards exhibits close to significant at the 10% level, suggesting a gradual adjustment effect on VOM. These findings suggest that policies promoting the optimization of credit cards and the management of float liquidity can encourage money circulation in the long term. However, the impact of debit cards must be carefully considered to avoid directly suppressing the speed of money circulation in the short term. Thus, the evolution of non-cash payment systems must strike a balance between transaction efficiency and its implications for national monetary dynamics.

This study investigates on the relationship between demographic factors and the usage of Islamic credit card as well as Conventional credit card demonstrates their interdependencies. The debatable issues as been addressed by many authorities not only in terms of the numbers of credit card flooding the nation’s economy, but the amount of transactions that end up with payment default and the numbers of credit card fraud as been recorded which threatened the economy should be seriously focused. Nevertheless the advances and changing habits in purchasing activities significantly contributed the diffusion of credit card as becoming more important and relevant in maintaining the purchasing activities. The study was conducted involving 305 respondents as a sample of study. While 26 items were used for addressing the research questions. Section A of the questionnaire seeks for information concerning the demographic profile of the respondents whilst section B and C that used Likert scale aimed to investigate information related to income and usage of credit card. The results of the study offer certain important managerial implications for the policy makers, finance institutions and the authorities bodies that take controls the credit card activities.

The anticipated gigantic changes in the banking and finance industry that are taking place around the world, have redesigned the competitive landscape of the industry with many digitalized services. This sparking trend has fortified many financial institutes in Sri Lanka to metamorphose its operation with international standards thriving competitive environment. Electronic payments and online baking facilities were few such innovative solutions that shift the entire economy towards a cashless society. Debit Card is a multipurpose electronic card that facilitates 24-hour customer services has now become a mandatory banking facility in Sri Lanka, therefore billions of money have been already invested by banks in the facility. By today the card is extensively applied everywhere, however, the application of debit cards is somewhat questionable especially in regional areas. Hence the objective of this study was to identify the level of customer awareness about debit card facilities and customers' satisfaction with the card. This deductive type quantitative study applied a questionnaire survey strategy and achieved its purpose through five causal hypotheses that tested the impact of convenience, security, prestige, rewards, availability of facilities on debit cardholders’ satisfaction. Randomly, selected individual customers (397) contributed to the survey on which different statistical (correlation and regression) tests were employed to meet the research objective. There were 51.1% of male respondents in the sample in which 73.6 % were married. The majority of respondents belonged to the 26-35 age category and above 50% of them had up to A/L education. All most of the respondents had awareness about the facilities of the debit card, however, very little usage was reported except withdrawal as still people comfortable with cash. Respondents had mostly use a debit card for expenses between 5000.00 and 50000.00. Finally, the study found that convenience and available facilities as significant factors that satisfy debit cardholders. Accordingly, convenience and available facilities of debit cards are the expound dimensions that upsurge debit card application in day to day transaction in Sri Lanka, therefore study strongly encourage banks to consider the aforementioned dimensions if they wish to uphold debit card usage in the country.
 Keywords: Banks, Cashless transaction, Debit Card, Facility, Satisfaction

Malaysia is one of the countries known for its Islamic finance and banking sector but the usage rate of Islamic credit cards is still weak compared to the usage of conventional credit cards among Muslim consumers in Malaysia. This study aims to study the factors that contribute to the selection of credit cards among Muslim workers, especially in Selangor, which is also one of the states with the highest state of employment rate in Malaysia. This study uses a quantitative method with an online survey on the purpose sampling technique by respondents among Muslim workers who is experience in credit card usage. Through these findings, the researcher has also formulated several hypotheses related to the level of knowledge, behavior, intention to use, selection factors and customer satisfaction levels towards Islamic and conventional credit cards that they use. The data was analyzed through descriptive and inferential analysis using Excel and SPSS. The main results of the study showed that the level of knowledge and belief in sharia compliance among Islamic credit card users had a higher level of knowledge compared to conventional credit card users. However, the annual charge rate, rewards, attractive promotions and customer satisfaction encouraged Muslim users to continue choosing conventional credit cards. Therefore, more precise and convincing efforts need to be expanded to strengthen Islamic financial education among Muslim users in addition to providing more attractive promotions and service charges that are more profitable for both parties.

Previous research has revealed that consumers spend less (more) money when paying through cash (credit card). This effect has been attributed to the pain of paying, which is higher (lower) in the case of cash (credit card) payments. We tested the pain‐of‐paying phenomenon at a bar and collected objective data on almost 1000 beer transactions, including information about the size of the beer consumed (small vs. large), the price paid per beer, the style of the beer, and consumers' payment method (cash vs. credit card). Consumers paying with cash (vs. credit card) spent less money per beer and were less inclined to choose large (vs. small) beers, with the payment method effect on money spent mediated by the size of the purchased beer. Moreover, those paying with cash (vs. credit card) were more inclined to choose dark beers, whereas their probability of purchasing India Pale Ales (IPAs) was directionally lower.Practical ApplicationsGiven our findings that payment method seems to influence alcohol consumption, these results should have important implications for bar and restaurant managers as well as for interventions aimed at mitigating consumer overspending on alcoholic beverages. Specifically, our findings align with research suggesting that card payments promote less healthy and more impulsive choices than cash payments. Excessive alcohol consumption is associated with numerous psychophysiological problems, whereas developing social ties, which is common among craft beer enthusiasts, reduces stress levels and improves mental health. Therefore, a reasonable compromise seems to be that policymakers recommend cash payments for alcoholic beverages to maximize social network development while minimizing the risk of excessive alcohol consumption. The result that consumers who paid with cash (vs. credit card) were more prone to purchase dark beers but slightly less likely to buy IPAs warrants further investigation.

Purpose This study aims to develop and validate a cross-national framework to identify the motivation underpinning consumers' (i.e. the general public's) loyalty toward credit card usage. The following research questions guided the study: (1) What factors motivate consumers to stay loyal to their credit card? (2) Does the investment model (regarding satisfaction and investment size) mediate the relationship between factors motivating consumers to stay loyal to their credit card? Design/methodology/approach This study employs the investment model theory (Rusbult, 1980) as a theoretical framework and uses structural equation modeling to develop and validate a cross-national framework, addressing factors that motivate consumers to stay loyal to credit card brands. In addition, the authors test the mediating effect of the investment model on the relationship. Survey data were collected from the United States and France. Findings The findings revealed four factors (incentives, customer service, investment size and satisfaction) that impact consumer credit card loyalty behavior in the two mature credit card markets. The authors find empirical support for two of four hypotheses. That is, investment size mediates the relationship between incentives and consumer loyalty, and satisfaction mediates the relationship between customer service and consumer loyalty. Moreover, unlike the French sample, the American sample produced a significant finding for investment size to mediate the relationship between customer service and consumer loyalty. Originality/value This paper validates and extends the investment model theory in the marketing of credit cards within a cross-national setting. Most studies on credit card consumption focus on the college student segment, and there is less understanding of the motivation to stay loyal to using a credit card from the general public who are not necessarily college students. Given the scarce stream of empirical studies dealing with cross-national consumer motivation, choice criteria of credit cards, and loyalty toward credit cards, this research comes at an opportune moment as credit card firms differentiate their card brands in the global marketplace. Further, a dataset originating from two mature Western economies has been put forward for the benefit of practitioners and researchers.