July 14, 2011
Though approximately two-thirds of Americans as of now prefer to pay with debit as opposed to credit cards, an Associated Press-GfK poll finds new debit charges could significantly impact consumer behavior.
“When debit card holders were asked how they would react if they were charged a $3 monthly fee for their debit card, 61 percent say they’d find another way to pay,” AP reports. “If the fee was $5, 66 percent would do the same. If the fee was $7, the figure rises to 81 percent.”
Rather than using another form of payment card, new debit fees would lead 53 percent to pay by cash and 42 percent by check.
The poll, which involved surveying more than 1,000 adults between June 16-20, comes ahead of new debit card interchange caps set by the Federal Reserve that will go into effect in October. Chase, PNC Bank and Wells Fargo have already downsized their debit rewards programs in anticipation of decreased interchange revenue.
“The availability of free checking accounts also declined last year for the first time since 2003,” notes AP, adding that Chase is testing new charges for checking accounts and debit cards in particular states.
Click here to view the full poll results.
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