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Behind the Convenience: Exploring the Dangers of Default Payment Settings in Credit Card Repayments

Research output: Contribution to conference - Without ISBN/ISSN Conference paperpeer-review

Published
Publication date11/07/2024
<mark>Original language</mark>English
EventAssociation of Consumer Research (ACR) Asia Pacific Conference - Bali, Indonesia
Duration: 8/07/202411/07/2024

Conference

ConferenceAssociation of Consumer Research (ACR) Asia Pacific Conference
Country/TerritoryIndonesia
CityBali
Period8/07/2411/07/24

Abstract

Contrary to common assumptions that autopay helps consumers manage their finances, this research shows that autopay reduces credit card repayments compared to active choice repayments. Further, it creates to a 'sticky' default effect, where consumers develop scope insensitivity to total debt that is impervious to incentives, precommitment and disclosure.