"Swipe Fee" Survey Measures Consumer Reaction to Proposed Credit Card Amendment

From NerdWallet

Wednesday, June 22, 2010

While banks, merchants and businesses anxiously await news of the Durbin "swipe fee" amendment to the financial reform bill, and worry about how it's going to affect profits on debit and credit card transactions, one might wonder, what do America's swipe-happy consumers think about all this?

They won't react well to potential surcharges, according to a "swipe fee" survey and infographic depicting the impact it will have on consumers and merchants -- released today by NerdWallet -- a credit card search site that helps consumers find a card that suits their spending habits. According to the respondents of the survey who have incomes of $100K and more, 71% say they are "not likely" to shop at a store that charges a 2% surcharge for credit card purchases, and 79% say that if faced with a $10 minimum on card purchases they would rather leave the store than be forced to meet the minimum.

For consumers making $50K or less, 46% say they rarely pay with cash and a full 80% are unlikely to shop at a place that charges them for card use. 70% of this same group say they use credit cards for most or all small purchases, while 57% say they would leave to find a different store if they were imposed with a $10 minimum.

In addition, the survey indicated:

• 70% of respondents "always" or "often" pay with a credit card for small transactions
• 58% carry three or more debit and credit cards
• 82% carry less than $50 in cash at any given point
• 67% of respondents who make more than $100K/yr carry less than $50, indicating that while they may have access to cash -- they prefer not to use it

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