Strong majorities value credit cards and overdraft protection, oppose lowering debit interchange fees, and support cannabis banking
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’s 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 that they value the convenience of using their credit cards, and 8 in 10 (79%) have at least one credit card that offers rewards, according to the survey. Nearly 9 in 10 (88%) said they value the rewards program on their credit cards, and by a 3-to-1 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 benefit 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,” said Rob Nichols, ABA president and CEO. “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.”
Consumers Want Retailers to Take Responsibility for Accepting Card Payments
U.S. adults overwhelmingly believe that retailers should be responsible for the costs associated with accepting credit card and debit card purchases. By a 6-to-1 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, 7 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,” said Nichols. “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.”
U.S. Adults Value Overdraft Protection and Want It to Remain an Option
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 account. 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, 8 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,” said Nichols. “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 released today 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,” said Nichols.
ABA released an accompanying infographic highlighting some of the survey results. The data released today is the latest in a series of results gauging U.S. consumers’ preferences and opinions regarding banks and their services. Yesterday, ABA released additional survey data revealing that Americans are happy with their bank and the options available to them, view banks as a source of strength for the economy, and trust banks most to protect them from fraud. The full results for today’s survey questions are as follows:
When asked “How much do you value each of the following? — The convenience of using your credit card(s),” consumers provided the following answers:
- A lot – 66%
- Some – 29%
- Not much – 3%
- Not at all – 1%
- Don’t know/no opinion – 1%
When asked “Do you have at least one credit card that offers rewards (e.g. cash back, airline miles, etc.)?” consumers provided the following answers:
- Yes – 79%
- No – 15%
- Don’t know/no opinion – 6%
When asked “How much do you value each of the following? — The rewards program on your credit card(s),” consumers provided the following answers:
- A lot – 48%
- Some – 40%
- Not much – 8%
- Not at all – 2%
- Don’t know/no opinion – 2%
When asked “How disappointed would you be to lose the rewards program on your card(s) due to government regulatory changes?” consumers provided the following answers:
- Very disappointed – 38%
- Somewhat disappointed – 26%
- Not too disappointed – 12%
- Not at all disappointed – 9%
- Don’t know/no opinion – 15%
When asked “Do you agree or disagree with the following statement? Merchants and retailers get significant benefit from being able to accept credit cards for payment,” consumers provided the following answers:
- Strongly agree – 31%
- Agree – 45%
- Disagree – 6%
- Strongly disagree – 2%
- Don’t know/no opinion – 18%
When asked “Should retailers pay for the convenience of customers using a credit or debit card as part of their cost of doing business or should they charge customers for using a credit or debit card?” consumers provided the following responses:
- Retailers should pay for the convenience and infrastructure to offer customers the ability to use a credit or debit card for purchases – 66%
- Retailers should charge customers for using a credit or debit card for purchases – 11%
- Don’t know/no opinion – 24%
When asked “Would you be more or less likely to shop at a retailer or restaurant if they add a surcharge for using your credit or debit card?” consumers provided the following responses:
- Much more likely – 7%
- Somewhat more likely – 12%
- Somewhat less likely – 30%
- Much less likely – 37%
- Don’t know/no opinion – 14%
When asked “Would you support or oppose lowering debit interchange fees for retailers if it meant banks would have to do each of the following? – Increase fees for checking accounts,” respondents who have a bank account provided the following responses:
- Strongly support – 7%
- Somewhat support – 9%
- Somewhat oppose – 24%
- Strongly oppose – 46%
- Don’t know/no opinion – 14%
When asked “How valuable do you find the overdraft protection offered by your bank?” consumers provided the following responses:
- Very valuable – 34%
- Somewhat valuable – 35%
- Not too valuable – 8%
- Not valuable at all – 5%
- Don’t know/no opinion – 18%
When asked “Regarding the bank covering your overdraft payment, were you glad the payment was covered, or would you have preferred the bank return or decline the payment?” consumers who have paid an overdraft fee in the past year provided the following answers:
- Glad the payment was covered – 80%
- Would have preferred the bank returned or declined the payment – 13%
- Don’t know/no opinion – 6%
When asked “How reasonable is it, in your opinion, for banks to charge fees for overdrafts?” consumers provided the following answers:
- Very reasonable – 24%
- Somewhat reasonable – 41%
- Somewhat unreasonable – 13%
- Very unreasonable – 10%
- Don’t know/no opinion – 12%
When asked “Knowing each of the following, how reasonable is it, in your opinion, for banks to charge fees for overdrafts? — Overdraft protection from banks ensures customers’ large payments such as mortgages or rent payments are covered and paid on time in the event these payments overdraft a customer’s account,” consumers provided the following answers:
- Very reasonable – 33%
- Somewhat reasonable – 38%
- Somewhat unreasonable – 7%
- Very unreasonable – 5%
- Don’t know/no opinion – 16%
When asked “Knowing each of the following, how reasonable is it, in your opinion, for banks to charge fees for overdrafts? — Overdraft protection from banks protects customers from late or other penalty fees if payments overdraft a customer’s account,” consumers provided the following answers:
- Very reasonable – 31%
- Somewhat reasonable – 38%
- Somewhat unreasonable – 9%
- Very unreasonable – 6%
- Don’t know/no opinion – 15%
When asked “How easy is it for you to check your account balance, so that you can avoid overdrawing your account?” consumers provided the following responses:
- Very easy – 70%
- Somewhat easy – 18%
- Somewhat difficult – 3%
- Very difficult – 1%
- Don’t know/no opinion – 9%
When asked “To your knowledge, can customers opt out of receiving overdraft protection at any time, or are they required to stay in the program once they accept this service, or are you not sure?” consumers provided the following responses:
- Customers can opt out – 68%
- Customers can’t opt out – 5%
- Don’t know/no opinion – 27%
When asked “Have you seriously considered stopping or getting out of your bank’s overdraft protection service?” consumers enrolled in overdraft protection service provided the following responses:
- Yes – 11%
- No – 81%
- Don’t know/no opinion – 8%
When asked “Would you prefer that your primary bank offer overdraft protection even if you are charged a fee for using it, or that your bank not offer overdraft protection at all?” consumers provided the following responses:
- I prefer that my bank offer overdraft protection as an option to customers, whether there is a fee or not – 69%
- I prefer that my bank not offer overdraft protection at all – 11%
- Don’t know – 20%
When asked “Do you support or oppose Congress passing legislation that allows cannabis businesses to have access to banking services and financial products (like checking accounts and business loans) in states where cannabis is legal?” consumers provided the following answers:
- Strongly support – 35%
- Somewhat support – 28%
- Somewhat oppose – 9%
- Strongly oppose – 8%
- Don’t know/no opinion – 120%
About the Survey
This poll was conducted by Morning Consult on behalf of the American Bankers Association from October 7-10, 2024, among a national sample of 4,508 adults split into two representative groups for specific question sets (Split Sample A n=2,266 | Split Sample B n=2,020). The interviews were conducted online and the data were weighted to approximate a target sample of adults based on age, race/ethnicity, gender, educational attainment, and region. Results from the full survey have a margin of error of plus or minus 1 to 2 percentage point.