PDF《Learning in the Credit Card Market》

3 percent of the amount advanced, or $5, is levied for each cash advance on the credit card. Unlike the ?rst two fees, this fee can be assessed many times per month. It does not cause the imposition of penalty pricing on purchases or debt. However, the APR on cash advances is typically greater than that on purchases, and is usually

16 percent or more.

9 Other types of fees include annual, balance transfer, foreign transactions, and pay by phone. All of these fees are relatively less important to both the bank and the borrower. Fewer issuers (the most notable exception being American Express) continue to charge annual fees, largely as a result of increased competition for new borrowers (Agarwal et al., 2005). The cards in our data do not have annual fees. A balan........