Debit card use by u.s. consumers
Subtitle: evidence from a new survey
By: Ron Borzekowski, Elizabeth K. Kiser, and Shaista Ahmed
Contributors: Kiser, Elizabeth K.; Ahmed, Shaista
Series: Finance and economics discussion series -- 2006-16; Finance and economics discussion series (Online) -- 2006-16.
Publisher: Federal Reserve Board
Published: 2006
Place of publication: Washington, D.C
Language: eng
Format: [electronic resource] :
Description: "Debit card use at the point of sale has grown dramatically in recent years in the U.S., and now exceeds the number of credit card transactions.  However, many questions remain regarding patterns of debit card use, consumer preferences when using debit, and how consumers might respond to explicit pricing of card transactions.  Using a new nationally representative consumer survey, this paper describes the current use of debit cards by U.S.  consumers, including how demographics affect use.  In addition, consumers' stated reasons for using debit cards are used to analyze how consumers substitute between debit and other payment instruments.  We also examine the relationship between household financial conditions and payment choice.  Finally, we use a key variable on bank-imposed transaction fees to analyze price sensitivity of card use, and find a 12 percent decline in overall use in reaction to a mean 1.8 percent fee charged on certain debit card transactions; we believe this represents the first microeconomic evidence in the United States on price sensitivity for a card payment at the point of sale"--Federal Reserve Board web site.
Notes: Title from PDF file as viewed on 12/7/2006.

Includes bibliographical references.

Also available in print.

System requirements: Adobe Acrobat Reader.

Mode of access: World Wide Web.