The Debit BoomWhile debit cardholders may have some confusion about how to best use their cards, it hasn't slowed down their usage, which Crone says is growing at 35% compounded annually.
|Where You Use Your Debit |
Grocery stores are the most popular place to use a debit card, accounting for almost one out of every four transactions. But when consumers swipe their cards, three times as many punch in a PIN number, which can trigger fees
|Source: Dove Consulting|
Three years ago, cash was king, used in 39% of all purchases, while credit and debit cards accounted for 22% and 21%, respectively, according to Dove Consulting. By last year, debit-card usage had surged, eating away at both cash and credit's share as a type of payment. In 2001, Dove statistics show debit accounted for 26% of all purchases, while cash's share shrunk to 33%. "Debit cards are the fastest-growing consumer product in the history of Visa," says Stacey Pinkerd, senior vice president at Visa. "Over 115 million people carry a Visa-branded debit card, with 60 million to 70 million using it every month."
|Hit Me! |
Many banks in New York charge you at the register when you use your PIN
|Bank||Debit Card Fee|
|Some They Will...|
|Bank of New York||50 cents|
|...And Some They Won't|
As debit card usage has boomed, so have the number of banks that penalize customers for entering a PIN instead of signing the receipt. In a study of 106 banks in the New York City area, NYPIRG found that 57% charge fees for punching a PIN in the checkout line. The average fee was 89 cents, but more than half had fees exceeding $1. Five of the 10 banks that issue the most debit cards charge some kind of fee for punching a PIN, ranging from 25 cents to $1.50, according to Consumer Reports.