Payment Steering Poses Substantial Risk of Customer Attrition
- Date:March 19, 2014
- Author(s):
- Michael Misasi
- Research Topic(s):
- Credit
- PAID CONTENT
Overview
Credit users are reluctant to change payment behavior.
Recent court settlements have expanded merchants’ options with respect to steering payments to their preferred (least cost) method of payment acceptance. Mercator Advisory Group’s consumer research suggests that many now permissible practices such as cash discounts or surcharging for credit card use could risk driving customers away.
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