Credit Card Pricing Developments and Their Disclosure

34 Pages Posted: 5 Aug 2004

See all articles by Mark J. Furletti

Mark J. Furletti

Federal Reserve Bank of Philadelphia

Date Written: January 2003

Abstract

Public data, proprietary issuer data, and data collected by the author from a review of over 150 lender-borrower contracts from 15 of the largest issuers in the U.S. suggest that, over the past 10 years, credit card issuers have drastically changed the way that they price their product. This paper outlines the history and dynamics of credit card pricing over the past 10 years and examines how new pricing methods are addressed by current regulatory disclosure requirements.

Keywords: Credit card, Truth in Lending Act, TILA, Regulation Z, pricing

JEL Classification: K2

Suggested Citation

Furletti, Mark J., Credit Card Pricing Developments and Their Disclosure (January 2003). Federal Reserve Bank of Philla Payment Cards Center Discussion Paper No. 03-02, Available at SSRN: https://ssrn.com/abstract=572585 or http://dx.doi.org/10.2139/ssrn.572585

Mark J. Furletti (Contact Author)

Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States