The Bank Policy Institute (BPI) has released new survey results from Morning Consult that indicate Americans highly value the convenience, security, and widespread acceptance of debit cards. The findings also reveal consumer concerns regarding government interference in private market price fixing.
"We have done the research, and consumer preference is clear: they support competitive marketplaces and believe that giant chain stores pay a fair price to process debit cards compared to the benefits earned in return," stated Greg Baer, BPI President and CEO. "Americans overwhelmingly find debit cards to be safe and convenient, and the reality is that debit card transactions benefit both consumers and merchants. We encourage the Federal Reserve to resist pressure from giant chain stores and remain focused on matters that affect consumers’ pocketbooks rather than entertaining retailers’ attempts to evade their bills."
The survey was conducted between August 23-25, 2024 among a national sample of 2,202 adults. Key findings include:
- Consumers overwhelmingly value the speed, convenience, and widespread acceptance of debit cards.
- More than two-thirds (70%) use debit cards at least once a week for purchases.
- An overwhelming majority are satisfied with checkout speed (93%), convenience (93%), access to transaction history (93%), universal acceptance at retailers (93%), and security during purchases (88%).
- Four-in-five consumers (82%) believe it’s important for their favorite stores to accept debit card payments.
- More than nine-in-ten consumers who lost a debit card or disputed a transaction were satisfied with their bank's response.
- Consumers prefer using debit or credit cards for purchases valued at $500 or more over other payment options.
Regarding interchange fees:
- Three-quarters of consumers agree these fees support fraud prevention measures by banks.
- Seventy percent believe lowering interchange fees would primarily benefit large retail chains.
- A majority oppose lowering these fees if it leads to higher banking service costs.
Additionally:
- Nine-in-ten consumers believe large retail chains should pay for processing debit card transactions despite any impact on their profits.
- Only one-in-ten have noticed lower prices since interchange fee caps were introduced in 2011.
- Three-quarters agree companies should negotiate prices without government interference.
The full survey results have a margin of error of plus or minus 2 percentage points.
The Bank Policy Institute is a nonpartisan public policy, research, and advocacy group representing leading banks in the United States. Members include universal banks, regional banks, and major foreign banks operating domestically.
Austin Anton
Bank Policy Institute
austin.anton@bpi.com