Consumers Choosing Cash Over Debit Cards - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Consumers Choosing Cash Over Debit Cards

Consumers Choosing Cash Over Debit Cards

Consumers Choosing Cash Over Debit Cards
The content is accurate at the time of publication and is subject to change.

Consumers still pull out cash at the register to cover small purchases, research shows.


According to a recently-released report from consulting firm Javelin Strategy & Research, almost 80% of consumers used cash to make a purchase throughout the past seven days, as compared to 65% of those who used a debit or credit card.


And more are willing to resort to making more payments using greenbacks, should push come to shove. When Bank of America attempted to impose a $5 monthly fee upon their customers for using a debit card for anything other than ATM transactions, some 32% of people surveyed claimed that they would start to use cash to make their purchases instead of a debit card in order to avoid the fee. Only 25% said they would counter the fee by using a credit card.


The main intent of the Javelin report was to shed some light upon how recent federally-mandated financial regulations have influenced the way people pay for things.


“The recession led many people to turn away from credit cards in favor of debit and prepaid cards as ways to control debt, but this trend seems to be slowing as the economy stabilizes. Today, there are more conflicting pressures on payment choice than ever before.” said Javelin`s president, James Van Dyke, in a statement.


Cash is experiencing a resurgence in popularity, partly because of the concerted efforts of stores and retailers to encourage their patrons to choose cash over plastic by pointing out paying with cash doesn’t cost any extra fee-wise.


Financial institutions, on the other hand, prefer consumers to choose credit cards instead. Recent financial reforms have capped the amount they can collect from merchants by way of interchange fees for debit card transactions, but no such restrictions currently exist on credit card transactions. To increase the appeal of using credit, lenders have amped up the rewards and perks cardholders can earn for making new charges.


“[Financial institutions] new messaging is that rewards are around something specific. And to get [consumers] to use credit more actively, especially if the price point is $11 or below,” said the director of payments research at Javelin, Beth Robertson, as reported by the Huffington Post.


Many consumers who relied upon debit cards throughout the recession as a way to better manage their spending are likely to show a preference for cash, however. Despite the lack of rewards in the form of bonus points or airline miles, the biggest reward users of cash receive is not increasing their debt.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Holiday Shopping is Trending

Posted: December 11, 2018

Shopping is definitely in style this holiday season with consumers, according to the new TD Bank Holiday Retail Report, on average they will be spending $530 on gifts. What are the trending gift-giving categories this season? Gift cards ... Continue reading
Some Upgrades Coming for American Express Business Platinum Cardholders

Posted: December 10, 2018

In 2019 people with the Business Platinum Card will be able to take advantage of some upgrades arriving with the new year. These new benefits are designed to boost productivity, as well as give cardholders more perks when traveling for ... Continue reading
New CENTURION Lounges in London and Charlotte

Posted: December 7, 2018

Travelers who pass through Heathrow airport when heading to London and Charlotte Douglas International Airport in North Carolina may well be happy to learn that American Express is opening new Centurion Lounges in both these airports. ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!