A new survey conducted by Morning Consult on behalf of the American Bankers Association found that a strong majority of U.S. consumers are happy with their credit cards and do not want the government to interfere with their card rewards programs. The survey, unveiled today on the second day of ABA’s 2024 Annual Convention in New York, also gauged consumers’ views on debit interchange fees paid by retailers, overdraft protection and cannabis banking.
Ninety-five percent of consumers said they value the convenience of using their credit cards, and eight in 10 (79%) have at least one credit card that offers rewards, according to the survey. Nearly nine in 10 (88%) said they value the rewards program on their credit cards, and by a three-to-one margin (64% vs. 21%), consumers say they would be disappointed to lose the rewards program on their credit cards due to government regulatory changes, a threat in the current Congress. By an overwhelming margin (76% agree vs. 8% disagree), consumers believe merchants and retailers get significant benefits from being able to accept credit cards for payment.
“This new survey data reaffirms that consumers greatly value their credit cards, and they don’t want to lose the benefits they offer due to government intervention,” ABA President and CEO Rob Nichols said. “New government mandates would jeopardize our secure payments system and the popular fraud protections and rewards programs that come with credit cards. At a time when consumers are already contending with higher retail prices, that would be a mistake.”
Retailer responsibility
U.S. adults overwhelmingly believe that retailers should be responsible for the costs associated with accepting credit card and debit card purchases. By a six-to-one margin (66% vs. 11%), consumers say that retailers should pay for the convenience and infrastructure to offer customers the ability to use a credit or debit card for purchase, as opposed to those who say retailers should charge customers for using a credit or debit card. Two-thirds (67%) are less likely to shop at a retailer or restaurant if they add a surcharge for using a credit or debit card. In addition, seven in 10 (70%) said they would oppose lowering debit interchange fees for retailers if it meant banks would have to increase fees for checking accounts.
“Large retailers want to have it both ways – price controls on debit interchange while also charging consumers for using their preferred method of payment,” Nichols said. “Retailers failed to lower prices for consumers the last time the Federal Reserve imposed a price cap on debit interchange rates, and it’s clear history would repeat itself this time around. This survey shows that consumers are aware of the many benefits retailers receive from accepting payment cards and are willing to vote with their feet if a retailer tries to take advantage of them.”
Overdraft protection
The survey also shows a strong majority of Americans appreciate and value bank overdraft programs, even as a current regulatory proposal could limit them. Seven in 10 consumers (69%) find their bank’s overdraft protection valuable – as compared with only 13% who do not find it valuable. Eight in 10 consumers (80%) who have paid an overdraft fee in the past year were glad their bank covered their overdraft payment, rather than returning or declining payment, and 65% of consumers think it’s reasonable for banks to charge a fee for an overdraft, as opposed to only 23% who think it’s unreasonable. Seven in 10 consumers view overdraft fees as reasonable when considering that large payments like mortgages or rent payments are covered and paid on time (71%) or when considering that customers are protected from late or other penalty fees if payments overdraw a customer’s account (69%).
The vast majority of consumers (88%) said it is easy for them to check their account balance so that they can avoid overdrawing their accounts. Seven in 10 respondents (68%) are aware that customers can opt out of receiving overdraft protection at any time after they’ve accepted the service, as compared with only 5% who incorrectly believe that customers are required to stay in the program once they accept the service. Of those respondents who are currently enrolled in overdraft protection, eight in 10 consumers (81%) have never seriously considered stopping or getting out of the service. A strong majority (69%) said they prefer that their bank offer overdraft protection as an option to customers whether there is a fee or not, as opposed to only 11% who prefer that their bank not offer overdraft protection at all.
“As the CFPB prepares to finalize a rule that will make it significantly harder for banks to offer overdraft protection, this survey shows that the Bureau is ignoring the majority of Americans who value and appreciate this product,” Nichols said. “The CFPB’s frequent mischaracterization of overdraft protection is politically motivated and doesn’t pass the smell test. Consumers clearly understand the product and how to use it, and most consider it a valuable tool to ensure important payments are made on time.”
Consumers support cannabis banking
The data also indicate that by greater than a 3-to-1 margin (63% support vs. 17% oppose) U.S. adults support Congress passing legislation that allows cannabis businesses to access banking services and financial products like checking accounts and business loans in states where cannabis is legal.
“Americans have remained steadfast in their view that Congress should resolve the ongoing conflict between state and federal law over cannabis banking by passing commonsense legislation that will enhance public safety, tax collection and transparency,” Nichols said.
ABA released an infographic highlighting some of the survey results. The survey follows a related survey released by ABA yesterday showing that Americans are happy with their banks and the options available to them.
