Coupling finite element and spectral methods: First results

A Poisson equation on a rectangular domain is solved by coupling two methods: the domain is divided in two squares, a finite element approximation is used on the first square and a spectral discretization is used on the second one. Two kinds of matching conditions on the interface are presented and compared. In both cases, error estimates are proved

Derivation and Analysis of Piecewise Constant Conservative Approximation for Anisotropic Diffusion Problems

A variational approach to derive a piecewise constant conservative approximation of anisotropic diffusion equations is presented. A priori error estimates are derived assuming usual mesh regularity constraints and a posteriori error indicator is proposed and analyzed for the model problem

Consumer credit and payment cards

We consider debit and credit card networks. Our contribution is to introduce the role of consumer credit into these payment networks, and to assess the way this affects competition and equilibrium fees. We analyze a situation in which overdrafts are associated with current accounts and debit cards, and larger credit lines with ‘grace’ periods are associated with credit cards. If we just introduce credit cards, we find their merchant fees depend not only on the networks’ cost of funds and the probability of default, but also on the interest rates of overdrafts. Whilst debit card merchant fees do not depend on funding costs or default risk in a debit-card only world, this changes when they start to compete with credit cards. First, debit merchant acceptance increases with the default probability, even though merchant fees increase. Second, an increase in funding costs causes a surprising increase in debit merchant fees. Effectively, the bank offering the debit card benefits from consumers maintaining a positive current account balance, when they use their credit instead of their debit card. As a result, this complementarity may lead to relatively high debit card merchant fees as the bank discourages debit card acceptance at the margin. JEL Classification: L11, G21, D53card competition, complementarity, consumer credit, Payment pricing

Do newspaper articles on card fraud affect debit card usage?

This paper investigates the impact of newspaper publications about debit card skimming fraud on debit card usage in the Netherlands using daily information from January 1st 2005 to December 31st 2008. Time-series analyses are employed to assess the daily fluctuations in aggregate debit card usage. The results show that newspaper articles that somehow make mention of the phenomenon of skimming fraud significantly affect the number of debit card payments. The direction of the effect depends on the type of skimming fraud addressed. Newspaper articles on fraud at points-of-sale (POS) and ticket machines depress the number of debit card payments. News on ATM fraud, by contrast, has a positive effect on debit card payments. This indicates that the temporarily created fear for using the debit card at the ATM is not automatically translated into fear for using the debit card at the POS. Instead, ATMs and POS terminals are perceived as substitutes. Although significant, all media effects found are relatively small in comparison with other factors such as calendar and holiday effects and daily rainfall. Moreover, the effects only last for one day, with consumers immediately reverting back to their regular payment behaviour. This corresponds to earlier results found in other research fields and suggests that consumers’ confidence in the debit card is relatively sturdy and not easily affected. Moreover, it might be an indication of consumers having a short memory when it comes to newspaper articles. JEL Classification: C22, C23, D12, E21Debit card, fraud, media communication, payment behaviour

Ohio Can Design a Leading Prepaid Debit Card for State Tax Refunds: New Approach Can Save Millions, Help Under-Banked Families

Over the last few years, state governments have begun issuing prepaid debit cards rather than paper checks for government payments to individuals. Unemployment compensation, supplemental food assistance (referred to as SNAP or food stamps), and most recently, tax refunds, are being provided by direct deposit or loaded onto prepaid debit cards.1 These electronic transfers and debit cards increase efficiency of payment and decrease state costs compared to paper checks, which fewer states are providing. The first type of transfer, direct deposit, provides a safe, reliable and convenient method of payment for taxpayers with bank accounts. The other electronic option, prepaid debit cards, can help unbanked clients if states get the fees and accessibility right.Ohio is considering legislation, Senate Bill 365, that would allow the state to issue a prepaid debit card as an option for those who do not receive direct deposit for their state tax refund. The state can save money by issuing the cards, but it is essential that Ohio set up a smart structure and appropriately regulate fees associated with the card.2 Getting these details right will ensure that Ohio families and communities fully benefit from tax refunds. This brief provides lessons Ohio can learn from experiences in other states and with existing cards here. According to the Department of Taxation, nearly 40 percent of those receiving state tax refunds -- 1.4 million Ohioans -- opted for a paper check and not direct deposit. Given the numbers of paper check filers, it is imperative that Ohio offers a prepaid debit card that is safe, transparent, and easy to use

ANALISIS PARAMETER SUHU, KADAR AIR, RASIO C/N, DAN SELULOSA AKIBAT VARIASI DEBIT UDARA PADA PROSES BIODRYING SAMPAH PERKOTAAN DENGAN PENAMBAHAN MIKROORGANISME BIODRIED

Sampah di Indonesia didominasi oleh sampah yang memiliki kadar air tinggi. Dampak negatif sampah tersebut berpotensi mengganggu lingkungan sekitar dan harus segera ditangani dengan teknologi yang tepat. Salah satu solusi untuk menangani sampah berkadar air tinggi adalah biodrying. Biodrying merupakan teknik pengeringan yang bergantung pada aktivitas biologis mikroorganisme. Biodrying bertujuan untuk mengurangi kadar air sampah dengan bantuan aerasi. Sehingga dilakukan penelitian mengenai pengaruh variasi debit udara (0 l/m, 2 l/m, 4 l/m, 6 l/m) terhadap suhu, kadar air, rasio C/N dan selulosa. Penelitian ini dilaksananakan selama 30 hari menggunakan sampah perkotaan berupa daun, plastik, kertas, sisa makanan, dan ditambahkan mikroorganisme biodried. Penambahan mikroorganisme biodried dapat meningkatkan degradasi selulosa dan tingkat penurunan kadar air lebih besar. Dampak dari degradasi selulosa diharapkan mampu menyumbang energi selama proses biodrying, sehingga tujuan utama dari biodrying dapat tercapai. Berdasarkan hasil penelitian, peningkatan debit udara tidak sebanding dengan efisiensi biodrying. Semakin besar debit udara tidak menjamin efisiensi biodrying, sedangkan semakin kecil debit belum tentu baik dalam proses biodrying. Debit optimal yang dicapai pada penelitian ini sebesar 4 liter/menit yang mampu menurunkan kadar air sebesar 58,29%, penurunan rasio C/N sebesar 1,07%, penurunan kadar selulosa sebesar 49,34% dengan suhu yang dapat dicapai sebesar 41

Debit card competition: signature versus pin

This article explores costs and benefits of two types of debit card authorization methods—signature and PIN (personal identification number)—for merchants, consumers, and financial institutions. It also considers competition between signature- and PIN-based debit cards in the United States and looks at Canada's predominant usage of PIN-based debit cards.Debit cards ; Payment systems

Change is in the Cards: Competition in the Canadian Debit Card Market

As new entrants arrive in Canada’s debit card market, rule changes are needed to ensure a level playing field, and to enhance the potential benefits of competition for consumers and merchants. In a study released today, the author assesses the implications of the rapidly changing debit payment landscape. Bergevin makes recommendations for action to ensure that consumers and merchants are protected and that the system can evolve to serve them even better.financial services, debit card market, VISA, MasterCard, Interac

Regulating debit cards: the case of ad valorem fees

Debit cards have become an indispensable part of the U.S. payments system, accounting for more than a third of consumer payments at point of sale. With this development has come controversy: Card networks charge merchants fees that merchants believe are too high. And most of the fees are ad valorem that is, based on transaction value rather than fixed fees per transaction. ; Given that debit cards incur a fixed cost per transaction, why do networks charge ad valorem fees? How do ad valorem fees affect payment market participants, including consumers, merchants, and card networks? And should policymakers consider regulating debit cards by requiring fixed per-transaction fees? ; Wang explores this controversy about debit card fee structures. His analysis shows that, when card networks and merchants both have market power, card networks earn a higher profit by charging ad valorem fees than fixed per-transaction fees. At the same time, merchant profits are reduced yet both consumer surplus and social welfare are increased. As an alternative, policymakers might consider regulating the debit fee structure simply by requiring fixed per-transaction fees (but allowing card networks to freely set the fee levels). Wang suggests, however, that this alternative may increase merchant profits at the expense of card networks, consumers, and social welfare. Therefore, caution should be taken when policymakers consider intervening in the debit card market.