Survey Finds Consumers Value Debit Card Convenience and Security Over Government Price Fixing and Profits for Giant Chain Stores

Washington, D.C. - The Bank Policy Institute released new Morning Consult survey results today that reveal Americans overwhelmingly value the convenience, security and widespread acceptance of debit cards, with many expressing concerns about government interference in fixing prices in private markets. The survey also found that a large majority of consumers believe it is fair for retailers to pay for the goods and services they use to operate, even if doing so cuts into their bottom line.

"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, conducted between Aug. 23 and Aug. 25, 2024 among a national sample of 2,202 adults, found:

• Consumers overwhelmingly value the speed, convenience, and widespread acceptance of debit cards - and believe it's important that retailers accept debit card payments.
  • More than two-thirds of consumers (70%) use debit cards at least once a week to make purchases, and an overwhelming majority of those with an opinion are satisfied with the following factors when using their debit card to make a purchase:
    • Speed of checkout (93%)
    • Convenience (93%)
    • Access to transaction history for recordkeeping (93%)
    • Universal acceptance at retailers (93%)
    • Security when making purchases (88%)
  • Four-in-five consumers with an opinion (82%) believe it's important for their favorite stores to accept debit card payments, including 61% who view it as very important.
    • 83% of lower-income consumers and consumers with less than a college degree believe it is important that their favorite stores accept debit card payments.
  • More than nine-in-10 (93%) consumers who have lost a debit card or disputed a transaction on their card were satisfied with their bank's ability to rectify the situation.
  • Of the tested payments options, consumers with an opinion are most likely to prefer debit (72%) or credit cards (73%) when making purchases valued at $500 or more, and 71% of consumers believe debit cards are more convenient than using cash.

• Consumers recognize the role of interchange fees in fraud prevention efforts and largely oppose lowering fees if doing so would result in higher costs for banking services.
  • Three-quarters of consumers with an opinion (73%) agree that interchange fees are necessary to support fraud prevention measures by banks.
  • 70% of consumers with an opinion believe that lowering interchange fees will only benefit large retail chain stores.
  • The majority of consumers with an opinion would oppose lowering interchange fees for large retailers if it meant requiring higher checking account fees (72%).
• Consumers believe it is fair for retailers to pay for processing debit card transactions, even if doing so cuts into their bottom line.
  • Nine-in-10 (90%) consumers with an opinion agree that large retail chain stores should be responsible for paying for the goods and services they use to operate, and a further 79% believe interchange fees are fair compared to the benefits that retailers receive from accepting debit card payments.
  • Three-quarters of consumers with an opinion (75%) believe that merchants should pay for processing debit card transactions even if it cuts into their bottom line.
• Consumers largely haven't experienced savings from retailers since lowering interchange fees in 2011, and a majority believe companies should be allowed to negotiate with each other on pricing without government interference.
  • Only one-in-10 consumers (9%) say they've noticed lower prices at retail stores since interchange fees were capped in 2011.
  • Three-quarters of consumers with an opinion (77%) agree that companies should be allowed to negotiate prices between one another without government interference.

Results from the full survey have a margin of error of plus or minus 2 percentage points. To access a copy, please click here.

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About Bank Policy Institute.

The Bank Policy Institute (BPI) is a nonpartisan public policy, research and advocacy group, representing the nation's leading banks and their customers. Our members include universal banks, regional banks and the major foreign banks doing business in the United States. Collectively, they employ almost 2 million Americans, make nearly half of the nation's small business loans, and are an engine for financial innovation and economic growth.

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Austin Anton
Bank Policy Institute
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