Introducing fees on debit cards in
the US will force the majority of cardholders to use cash instead,
according to a report from Mercator Advisory Group.
The study, sponsored by the
National Payment Card Association (NPCA), reported that a $10
monthly fee would result in the majority of cardholders suspending
use of debit cards.
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Of the 1,000 US adults surveyed,
more than three quarters earning over $75,000 said they would stop
using their cards across all store types should fees be
introduced.
“Debit cards are currently the
preferred form of payment for many consumers at convenience, drug
and grocery stores, but that preference is tenuous at best when
even a modest monthly fee is introduced into the mix,” said
Patricia Hewitt, a director at Mercator.
Joe Randazza, NPCA president said:
“This study clearly demonstrates just how price sensitive the
consumer market is.”
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By GlobalData
