Debit card payment fees would drive US consumers back to cash – research

The survey, carried out by Mercator Advisory Group and sponsored by the National Payment Card Association, has shown that the addition of a mere USD 10 monthly fee could determine most consumers to stop using their debit cards for day to day payments and start looking for other payment alternatives such as cash. The study has also revealed that women are more likely than men to halt their card usage and that more than three quarter of individuals with incomes totaling over USD 75,000 would stop using their debit cards across all store types.

However, a third of respondents have immediately shown receptiveness to the idea of using a debit card product offered directly by merchants without fees whereas 15 percent of participants claimed they would be interested in any reward programs associated with debit card payments, the same research pointed out.

The study was designed to look at the effect fees and rewards would have on everyday purchase payment decisions at the point of sale with specific focus on the use of debit cards.