Formatted Text Improves the Communication of Credit Card Information: Effects on Response Time

Abstract

Understanding basic credit card information can be important for maintaining secure personal finances. Although considerable human factors research has examined safety communications and warnings to avoid risk of personal injury, little human factors research has been conducted on communications associated with financial risk. This study explored whether human factors principles can be applied to credit card information intended for consumers. People’s decision-making performance was examined with respect to credit card application information given in two formats: less versus more structured format, with the latter involving information chunking and spacing. Participants (N=40) compared 16 pairs of credit card applications with the task of selecting one among each pair that was the better financial deal (i.e., that reduced financial risk or saved more money). Eight pairs had less formatting (in prose style) and eight pairs had more structured formatting. The results showed that the credit card applications with the more structured format significantly reduced comparison (decision) times but had only minor effects on response accuracy. Implications for formatting financial risk disclosures are offered.