Finance Charges on Credit Card Accounts

1987 ◽  
Vol 80 (8) ◽  
pp. 624-630
Author(s):  
Franklin Kost
Keyword(s):  
United States ◽  
Credit Card ◽  
The United States ◽  
Retail Chain ◽  
American Express

There are 114 million Visa accounts worldwide (Newsweek 1985) and 66 million in the United States (Visa U.S.A. 1986b), of which 72 percent had balances during 1985. (This number is compared to 15 million American Express and 65 million MasterCard.) The average balance was nearly 900 dollars. These U.S.A. Visa accounts were assessed finance charges during 1985 in excess of 6 billion dollars. About 71 percent of the 500 million statements sent out in 1985 had finance charges assessed for an average of 18 dollars per statement. Sears, the nation's largest retail chain, collected 2.1 billion in finance charges in 1984 on its 40 million accounts.

Why Did Credit Card Balances Decline so Much during the COVID-19 Pandemic

FEDS Notes ◽  
2021 ◽  
Vol 2021 (3025) ◽  
Author(s):  
Robert M. Adams ◽  
◽  
Vitaly M. Bord ◽  
Bradley Katcher ◽  
◽  
...  
Keyword(s):  
United States ◽  
Credit Card ◽  
Consumer Credit ◽  
The United States ◽  
History Of

Consumer credit card balances in the United States experienced unprecedented declines during the COVID-19 pandemic. According to the G.19 Consumer Credit statistical release, revolving consumer credit fell more than $120 billion (11 percent) in 2020, the largest decline in both nominal and percentage terms in the history of the series.

scholarly journals Attitudes toward Credit and Finances among College Students in Brazil and the United States

2013 ◽  
Vol 1 (1) ◽  
pp. 132 ◽  
Author(s):  
Jill M. Norvilitis ◽  
Wesley Mendes-Da-Silva
Keyword(s):  
United States ◽  
College Students ◽  
Parenting Practices ◽  
Credit Card ◽  
Student Loans ◽  
Credit Cards ◽  
Well Being ◽  
Developed Countries ◽  
The United States ◽  
Delay Of Gratification

Although research on credit card debt in developed countries has identified predictors of debt among<br />college students, it is unknown whether these same predictors apply in emerging markets, such as<br />Brazil. To examine this issue, a total of 1257 college students, 814 from Brazil and 443 from the United<br />States, participated in a study exploring the utility of a theory of planned behavior as a predictor of<br />credit card debtand student loans among college students, as well as perceived financial well-being.<br />Compared to the Brazilian participants, the American sample was more financially self-confident,<br />reported better financial well-being, and was more likely to believe that credit cards are negative.<br />Similar predictors of financial well-being emerged in the samples. Specifically, parenting practices<br />related to money and better self-reported delay of gratification are related to more positive financial<br />attitudes and lower levels of debt. Although the debt to income ratio among card holders was similar,<br />Brazilian students held more credit cards than American students. Greater delay of gratification was<br />related to lower levels of student loans in the United States, but there were no significant predictors of<br />student loans in Brazil.

Maxxed Out: TJX Companies and the Largest-Ever Consumer Data Breach

2017 ◽  
pp. 1-8
Author(s):  
Russell Walker
Keyword(s):  
United States ◽  
Credit Card ◽  
The United States ◽  
List Type ◽  
Data Breach ◽  
Royal Canadian Mounted Police ◽  
Operational Risks ◽  
Savings Bank ◽  
Security Standards ◽  
The U.S

In November 2005 Fidelity Homestead, a savings bank in Louisiana, began noticing suspicious charges from Mexico and southern California on its customers' credit cards. More than a year later, an audit revealed peculiarities in the credit card data in the computer systems of TJX Companies, the parent company of more than 2,600 discount fashion and home accessories retail stores in the United States, Canada, and Europe.The U.S. Secret Service, the U.S. Justice Department, and the Royal Canadian Mounted Police found that hackers had penetrated TJX's systems in mid-2005, accessing information that dated as far back as 2003. TJX had violated industry security standards by failing to update its in-store wireless networks and by storing credit card numbers and expiration dates without adequate encryption. When TJX announced the intrusion in January 2007, it admitted that hackers had compromised nearly 46 million debit and credit card numbers, the largest-ever data breach in the United States.After analyzing and discussing the case, students should be able to: Understand imbedded operational risks Analyze how operational risk decisions are made in a firm Understand the challenges in the electronic payment transmission process, which relies on each participant in the process to operate best-in-class safety systems to ensure the safety of the entire process Recognize the sophistication of IT security threats

scholarly journals Editorial

2017 ◽  
Vol 10 (2) ◽  
pp. 191-193
Author(s):  
Gideon Els
Keyword(s):  
United States ◽  
Credit Card ◽  
Accounting Standards ◽  
The United States ◽  
Financial Accounting ◽  
Financial Accounting Standards Board

In the second part of her research, Sophia Brink again looks at the accounting treatment of credit card rewards programmes. In May 2014 the IASB and the United States Financial Accounting Standards Board (FASB), published IFRS 15

scholarly journals Consumer Debt and Default: A Macro Perspective

2020 ◽  
Author(s):  
Florian Exler ◽  
Michèle Tertilt
Keyword(s):  
United States ◽  
Interest Rates ◽  
Credit Card ◽  
The United States ◽  
Future Research ◽  
Consumer Debt ◽  
Credit Expansion ◽  
Balance Sheets ◽  
Long Run ◽  
Welfare Consequences

Consumer debt is an important means for consumption smoothing. In the United States, 70% of households own a credit card, and 40% borrow on it. When borrowers cannot (or do not want to) repay their debts, they can declare bankruptcy, which provides additional insurance in tough times. Since the 2000s, up to 1.5% of households declared bankruptcy per year. Clearly, the option to default affects borrowing interest rates in equilibrium. Consequently, when assessing (welfare) consequences of different bankruptcy regimes or providing policy recommendations, structural models with equilibrium default and endogenous interest rates are needed. At the same time, many questions are quantitative in nature: the benefits of a certain bankruptcy regime critically depend on the nature and amount of risk that households bear. Hence, models for normative or positive analysis should quantitatively match some important data moments. Four important empirical patterns are identified: First, since 1950, consumer debt has risen constantly, and it amounted to 25% of disposable income by 2016. Defaults have risen since the 1980s. Interestingly, interest rates remained roughly constant over the same time period. Second, borrowing and default clearly depend on age: both measures exhibit a distinct hump, peaking around 50 years of age. Third, ownership of credit cards and borrowing clearly depend on income: high-income households are more likely to own a credit card and to use it for borrowing. However, this pattern was stronger in the 1980s than in the 2010s. Finally, interest rates became more dispersed over time: the number of observed interest rates more than quadrupled between 1983 and 2016. These data have clear implications for theory: First, considering the importance of age, life cycle models seem most appropriate when modeling consumer debt and default. Second, bankruptcy must be costly to support any debt in equilibrium. While many types of costs are theoretically possible, only partial repayment requirements are able to quantitatively match the data on filings, debt levels, and interest rates simultaneously. Third, to account for the long-run trends in debts, defaults, and interest rates, several quantitative theory models identify a credit expansion along the intensive and extensive margin as the most likely source. This expansion is a consequence of technological advancements. Many of the quantitative macroeconomic models in this literature assess welfare effects of proposed reforms or of granting bankruptcy at all. These welfare consequences critically hinge on the types of risk that households face—because households incur unforeseen expenditures, not-too-stringent bankruptcy laws are typically found to be welfare superior to banning bankruptcy (or making it extremely costly) but also to extremely lax bankruptcy rules. There are very promising opportunities for future research related to consumer debt and default. Newly available data in the United States and internationally, more powerful computational resources allowing for more complex modeling of household balance sheets, and new loan products are just some of many promising avenues.

Debt and Mental Illness: An Untreated Public Health Epidemic

2017 ◽  
pp. 1-2
Keyword(s):  
Public Health ◽  
United States ◽  
Mental Illness ◽  
Credit Card ◽  
Multiple Stressors ◽  
The United States ◽  
Credit Card Debt ◽  
Way Of Life ◽  
High Expectations ◽  
Household Costs

Trauma and various forms of trauma are at the root of many of the mental illness issues in the United States. Individuals living in the United States are increasingly plagued with multiple stressors and high expectations. Debt has become a way of life for most Americans with housing and medical costs growing faster than our incomes. In 2016, the average American household with credit card debt had more than $16,000 in credit card debt. Moreover, many statistics say that the majority of Americans are only one paycheck away from homelessness. Meaning, the majority of Americans are not only in significant credit card debt in an effort to meet basic household costs, but they are living paycheck to paycheck.

E-ZPass and the Ohio Turnpike

2012 ◽  
pp. 327-348
Author(s):  
Eliot Rich
Keyword(s):  
United States ◽  
Air Pollution ◽  
Customer Satisfaction ◽  
Radio Frequency Identification ◽  
Credit Card ◽  
The United States ◽  
Art Practice ◽  
Electronic Toll Collection ◽  
Frequency Identification ◽  
Toll Collection

“Stop Stopping, Get Going.” The commonwealth of Virginia’s Web site slogan (2005) tells much of the E-ZPass story.1 E-ZPass uses computer technology to automate vehicle toll collection and payments across most of the northeastern and eastern sections of the United States. E-ZPass participants have radio frequency identification (RFID) tags installed in their cars to signal their trip through a tollbooth. Each entry and exit is recorded in a database and charged against an account on file. Bills for tolls may be paid automatically through a credit card charge or from deposits in a cash account. Electronic toll collection reduces delays at tolls, eliminates fumbling for change, trims air pollution from idling vehicles, and accelerates travel. By most accounts, E-ZPass has been a resounding success. Within the northeastern and midwestern United States, over 9 million account holders subscribe to the program, recording over 2 billion transactions each year for road, bridge, and tunnel use in 2006. Customer satisfaction is high, and program enrollments continue to grow. E-ZPass represents a state-of-the-art practice in electronic toll collection as well as a significant success in the use of RFID technology for consumers (U.S. Federal Trade Commission, 2005).

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