Study Demonstrates Popularity of Check Cards

[Sep 18, 2007.]

 

A survey by Bankrate demonstrates just how much American consumers are benefiting from debit cards.

Debit cards are more popular than ever, as consumers turn to them for their convenience and budget-management capability. The cards have also gained acceptance because they do not carry any transaction fees but do offer a number of rewards programs.

Bankrate polled the 10 biggest banks and thrifts in the top 10 markets in order to find out about their check card policies and fee structures. Of the 100 financial institutions surveyed, only 7 charged point-of-sale fees for PIN transactions. The majority of those with charges charged per transaction rather than charging on a monthly basis.

A scant 3% of the banks surveyed do not offer check cards at all. Of those that do offer debit cards, only two charged annual fees - Bank of the West in San Francisco and Firstrust Savings Bank in Philadelphia.

Meanwhile, the Federal Reserve reports that check cards have been used to make more purchases than credit cards for the past 4 years. One financial institution, Wells Fargo, charges $1 per month for signature transactions. But the fee applies no matter how many transactions a consumer logs in a month.

Why the widespread popularity of check cards? There may be a number of reasons for the phenomenon. To begin with, check cards are convenient - they're far less time-consuming than writing a check. Also, they are more secure than cash, providing a paper trail that can be critically important if you discover a defect in a product. They can also be an incredibly helpful money management tool, since they allow you to make purchases without racking up the fees and finance charges associated with conventional credit cards. Debit cards may be particularly popular among young consumers, who prefer using plastic to using paper money or writing paper checks.

Julie Ann Amos
September 19th 2007

Recent News

• Specter of Recession Looms in the U.S.
  The specter of recession is rising in the U.S., buoyed by the tidalwave of troubles in the stock market and housing sector. [19th September 2007]


• Fall is the Time for Re-evaluating Credit Card Options
  With fall just around the corner, many people—especially college-age people—may be re-evaluating their credit card options. This year, there are an endless number of possibilities for those seeking to expand their credit horizons [17th September 2007]


• Barclays Credit Business Reaches Milestone
  Barclays has become the fastest-growing credit card issuer in the U.S., based on figures just released by the company.[17th September 2007]


• Foreclosures in the U.S. on the Rise Again
  The number of individuals forced into home foreclosure is rising. Statistics show that the foreclosure rate jumped 9% in July over the previous month's totals. When compared with last year, the foreclosure rate is up an astounding 93%. [17th September 2007]


• Mastering Money
  For a teenager, turning 16 means nabbing that first drivers' license, securing that first job, and earning that first paycheck. But it can also be an age of rude awakening, as a teen must, often for the first time, deal with money matters. [17th September 2007]


• Credit Card Customers Face Debt Trap
  A New York think tank has determined that many credit card customers are trapped in what is being described as a "dangerous cycle of debt." As a result, their financial security has been seriously compromised.[13th September 2007]