Skip to content Skip to navigation
University of Warwick
  • Study
  • |
  • Research
  • |
  • Business
  • |
  • Alumni
  • |
  • News
  • |
  • About

University of Warwick
Publications service & WRAP

Highlight your research

  • WRAP
    • Home
    • Search WRAP
    • Browse by Warwick Author
    • Browse WRAP by Year
    • Browse WRAP by Subject
    • Browse WRAP by Department
    • Browse WRAP by Funder
    • Browse Theses by Department
  • Publications Service
    • Home
    • Search Publications Service
    • Browse by Warwick Author
    • Browse Publications service by Year
    • Browse Publications service by Subject
    • Browse Publications service by Department
    • Browse Publications service by Funder
  • Help & Advice
University of Warwick

The Library

  • Login
  • Admin

How do consumers avoid penalty fees? Evidence from credit cards

Tools
- Tools
+ Tools

Gathergood, John, Sakaguchi, Hiroaki, Stewart, Neil and Weber, Jörg (2020) How do consumers avoid penalty fees? Evidence from credit cards. Management Science . doi:10.1287/mnsc.2019.3568 (In Press)

[img]
Preview
PDF
WRAP-how-consumers-penalty-fees-credit-cards-Stewart-2020.pdf - Accepted Version - Requires a PDF viewer.

Download (1545Kb) | Preview
Official URL: https://doi.org/10.1287/mnsc.2019.3568

Request Changes to record.

Abstract

Using data from multiple card issuers, we show that the most common penalty fee type incurred by credit card holders, late payment fees, declines sharply over the first few months of card life. This phenomenon is wholly due to some consumers adopting automatic payments after a late payment event, thereby insuring themselves against future late payment fees. Nonadopters, who remain on manual-only payments, experience an unchanged high likelihood of future fees, despite exhibiting ample levels of available liquidity. Our results show that heterogeneity in adopting account management features of financial products, such as automatic payments, is important for understanding who avoids financial mistakes.

Item Type: Journal Article
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Science > Psychology
Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH): Credit card fees, User charges, Direct deposit payments, Credit cards, Consumer protection -- Law and legislation -- Great Britain -- Econometric models
Journal or Publication Title: Management Science
Publisher: Institute for Operations Research and the Management Sciences (I N F O R M S)
ISSN: 0025-1909
Official Date: 13 May 2020
Dates:
DateEvent
13 May 2020Available
2 December 2019Accepted
Date of first compliant deposit: 31 January 2020
DOI: 10.1287/mnsc.2019.3568
Status: Peer Reviewed
Publication Status: In Press
Access rights to Published version: Restricted or Subscription Access
Copyright Holders: Copyright © 2020, INFORMS
RIOXX Funder/Project Grant:
Project/Grant IDRIOXX Funder NameFunder ID
ES/K002201/1, ES/N018192/1, ES/P008976/1, Economic and Social Research Councilhttp://dx.doi.org/10.13039/501100000269
1499648[ESRC] Economic and Social Research Councilhttp://dx.doi.org/10.13039/501100000269
RP2012-V-022Leverhulme Trusthttp://dx.doi.org/10.13039/501100000275
Related URLs:
  • Publisher

Request changes or add full text files to a record

Repository staff actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics

twitter

Email us: wrap@warwick.ac.uk
Contact Details
About Us