Template-Type: ReDIF-Article 1.0

Author-Name: Tamás Ilyés
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: ilyest@mnb.hu
Author-Person: pil61

Author-Name: Lóránt Varga
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: vargalor@mnb.hu
Author-Person: pva444

Title: Acceptance of Payment Cards by Retailers in Hungary Based on Data of Online Cash Registers

Abstract: In our study we examined payment card acceptance in the Hungarian retail sector
based on a receipt-level, detailed dataset derived from online cash registers. The
main objective of our research was to identify the primary explanatory variables and
to test conventional card acceptance hypotheses. For the purposes of our analysis,
we relied on anonymised online cash register data provided by the National Tax
and Customs Administration (NTCA) for the year 2016. Covering an extremely
broad section of the Hungarian retail sector, with nearly 3.8 billion data points
the database provides a basis for complex and robust analyses. We tested storelevel
monthly aggregate data with county and network attributes. Based on the
robust results of the research, we found that store size can be considered the most
important explanatory variable behind card acceptance decisions; however, the
correlation is not linear. The marginal effect of size is negligible among small and
large-sized stores, but there is a strong positive correlation among mid-sized stores.
We also analysed the effect of the store’s customer base and other attributes,
and although numerous effects proved to be statistically significant, they wielded
negligible influence in card acceptance decisions. On the other hand, being open on
Sundays – a subjective variable that was used as a proxy for store ownership – had
a significant negative effect on card acceptance decisions.

Classification-JEL: C44, G20, D22
Keywords: payment transactions, card acceptance, payment methods, decision models, logistic regression
Pages: 83-109
Volume: 17
Issue: 1
Year: 2018
File-URL: http://english.hitelintezetiszemle.hu/letoltes/fer-17-1-st4-ilyes-varga.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:17:y:2018:i:1:p:83-109