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

The safety of cash and debit cards: a study on the perception and behaviour of Dutch consumers

This paper investigates the impact of consumers' safety perception on debit card and cash usage. A conceptual framework of safety perception and payment behaviour is introduced and tested with 2008 consumer survey data. The results demonstrate that consumers' payment preferences for cash and debit cards are strongly affected by how consumers assess the likelihood and seriousness of safety incidents related to cash, debit cards and ATM withdrawals. Risk aversion, personal characteristics and personal experiences all play a significant role. This study underlines the importance of effective safety measures, which minimise the risks inherent in the payment system, and of clear communication towards consumers, so that they may continue to pay efficiently and safely in all circumstances.debit card; cash; fraud; safety; payment behaviour; risk perception; risk aversion

The impact of survey design on research outcomes: A case study of seven pilots measuring cash usage in the Netherlands

We employ a unique dataset of transaction records to analyse whether results of consumer surveys are influenced by the survey setup. We have asked more than 5,000 consumers to report their payments using seven different data collection methods. The results of the seven pilot studies were validated against actual payments data from retailers and the owner of the Dutch debit card scheme. The results of both the validation exercise and econometric analyses reveal that both the data collection mode and the length of the registration period significantly influence consumers' registration of payments. Measurement errors are minimised when consumers are asked to use a self-reported transaction diary for one single day.cash; efficiency; payment behaviour; survey design; measurement error

Choosing how to pay: the influence of home country habits

Is having a foreign background a relevant factor in choosing between payment instruments in consumer point-of-sale transactions? We analyze this question using a unique diary survey in which both participants with a Dutch and a foreign background documented their daily purchases. Payment habits acquired in home countries continue to affect the mode of payment after migration. First generation migrants born in cash-oriented economies are more likely to use cash in point-of-sale transactions. However, the second-generation has similar payment habits as individuals with a Dutch background. This finding suggests that payment behaviour is not passed on from generation to generation, but moulded by host country payment habits. Finally, we suggest that special information campaigns to increase debit card usage will not have clear net social benefits.consumer payments; habits; debit card; cash, migration

Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data ∗

We measure consumers ’ use of cash by harmonizing payment diary surveys from seve