Defined Terms and Documents       

Credit Cardholders' Contribution To Credit Card Issuers Gross Revenue

National Credit Reform: Enhancing Confidence and Fairness in Australia’s Credit Law dated July 2010 notes:

"Credit card users are generally recognised to fall into two broad categories — Transactors and Revolvers:  

*         Transactors (67% circa of Credit Cardholders) pay their outstanding balances on time and therefore incur no interest charges.  

*         Revolvers (33% circa of Credit Cardholders) tend to carry (or revolve) their debt, making minimum repayments or slightly more, and thus maintain a level of continuing debt.  Due to their outstanding balances and repayment habits, Revolvers pay more interest, and tend to have higher default rates."

"The majority of credit card users (by number) in Australia are Transactors, consumers who pay outstanding balances in full on or before the time the minimum monthly repayments fall due and thus do not incur interest rate or penalty charges."

12.58% circa of Credit Cardholders, namely Australia's Persistent Revolvers (referred to by McKinsey in the USA as 'Financially stressed') identified in the below RBA Graph 7 "Cardholder Payment Behaviour" (in RBA report RBA Submission to the Senate Inquiry into Matters Relating to Credit Card Interest Rates - Aug 2015) have paid 80% circa of Interest and Penalty Fees Revenue. 

Interest and Penalty Fees Revenue represent 80% circa of Credit Card Issuers' Gross Revenue.  After removing Merchant Service Fees (ostensibly Interchange Fees and Card Acquirer Fees) from Credit Card Issuers' Gross Revenue,  Interest and Penalty Fees Revenue paid by Persistent Revolvers accounts for 89% circa of Credit Cardholders' "Contribution To Gross Revenue".

Further substantiated in Transactors and Revolvers,  Persistent Revolvers,  Interest and Penalty Fees Revenue and Interest and Fees Revenue.