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RBA Glossary definition for basis point

basis point – A basis point is 1/100th of 1 per cent or 0.01 per cent, so 100 basis points (bps) is equal to 1 percentage point. The term is used in money and securities markets to define differences in interest or yield. If an interest rate were to increase from 2 per cent to 3 per cent, it is said to have risen by 100 basis points (bps) or one percentage point.

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The Value of Payment Instruments: Estimating Willingness to Pay and Consumer Surplus

30 Mar 2015 RDP 2015-03
Tai Lam and Crystal Ossolinski
We estimate that on average credit card holders place a value of 0.6 basis points on every 1 basis point of effective rewards rebate. ... of 13 basis points per transaction.
https://www.rba.gov.au/publications/rdp/2015/2015-03.html

Appendix B: Methodology – Estimation of Willingness to Pay

11 Sep 2015 RDP 2015-03
Tai Lam and Crystal Ossolinski
p. l. is an element of the set L of lower bound prices (in basis points) of {,10,50,75,100,200,300,400}. ... l. The eight ranges of willingness to pay in basis points are:.
https://www.rba.gov.au/publications/rdp/2015/2015-03/appendix-b.html

Appendix E: Model Regressors for Predictive Model

11 Sep 2015 RDP 2015-03
Tai Lam and Crystal Ossolinski
Included. Credit card rewards rebate. Basis points. Included. Credit card interest rate. ... In the stated range. 53. 41. Within 50 basis points of the stated range.
https://www.rba.gov.au/publications/rdp/2015/2015-03/appendix-e.html

Appendix D: Log-normal Model for Willingness to Pay

11 Sep 2015 RDP 2015-03
Tai Lam and Crystal Ossolinski
Sample of credit card holders. Coefficient. Marginal effect. (a). Basis points. ... Card features. Rewards rebate (basis points). 0.01. 0.2. Interest rate (per cent).
https://www.rba.gov.au/publications/rdp/2015/2015-03/appendix-d.html

Willingness to Pay for the Use of Credit Card Features

11 Sep 2015 RDP 2015-03
Tai Lam and Crystal Ossolinski
a). Basis points. Basis points. Card features. Rewards rebate (basis points). ... Starting from a baseline where each credit card respondent has a rewards rebate of 40 basis points (but otherwise has their observed characteristics unchanged), a 40 basis
https://www.rba.gov.au/publications/rdp/2015/2015-03/willingness-pay-use-credit-card-features.html

Estimating Consumer Surplus under Various Surcharging Scenarios

11 Sep 2015 RDP 2015-03
Tai Lam and Crystal Ossolinski
cash or debit cards and a 100 basis point surcharge applied to credit cards, the economic surplus nevertheless increases by 12 basis points (Table 7). ... Under this scenario, the use of cards falls significantly and surplus falls by 4 basis points in
https://www.rba.gov.au/publications/rdp/2015/2015-03/estimating-consumer-surplus-surcharging-scenarios.html

Distribution of Willingness to Pay for Card Payments

11 Sep 2015 RDP 2015-03
Tai Lam and Crystal Ossolinski
While respondents who were willing to pay 400 basis points or more to use credit cards made only 6 per cent of point-of-sale payments, these individuals paid 10 per ... Table 3: Willingness to Pay for Card Payments. Sample of credit card holders;
https://www.rba.gov.au/publications/rdp/2015/2015-03/distribution-willingness-pay-card-payments.html

Data

11 Sep 2015 RDP 2015-03
Tai Lam and Crystal Ossolinski
Around 5 per cent of respondents belong to premium rewards programs that provide a rebate of over 100 basis points. ... Our results, therefore, are going to be most applicable to point-of-sale payments of around $50.
https://www.rba.gov.au/publications/rdp/2015/2015-03/data.html