Call it consumer angst. Customers are considering leaving financial institutions that add debit card fees, the results of a new consumer survey suggest.
But whether those consumers actually leave their banks remains to be seen, according to the Research Intelligence Group, which surveyed 1,000 consumers online in October and found that 30% of respondents said they would leave their financial institutions over debit card fees.
“We’re not sure how many of those consumers would actually leave, but it’s a strong measure of consumer frustration to the point where they are considering taking pretty substantial action,” Rob Kaplan-Sherman, president of the company’s services division, tells ISO&Agent Weekly.
Respondents indicated they would change their payment preferences if faced with a debit card fee, Research Intelligence Group says. Twenty-eight percent would use cash, while 15% reported a preference for credit.
Kaplan-Sherman believes those two choices could lead to more grief for consumers.
Consumers carrying cash could feel less secure knowing it will not be replaced if lost or stolen, he says. Credit would increase the likelihood that consumers would go into debt, which they have shied away from doing as debit became more popular the past few years.
The debit fees could place consumers in a position “that they feel as though it’s not a winnable situation” using cash or credit, Kaplan-Sherman says.
Some 13% of respondents said they would pay the fee if it were reasonable. The group did not present consumers with choices to determine what they would consider fair.
How many consumers accept the fee might depend on how banks position the overall benefits, Kaplan-Sherman says. “Can financial institutions bundle that fee into a better checking or savings account product?” he asks.
The group’s survey results are similar to those Swacha published in September.
The Dallas-based regional-payments association found some 62% of Texas consumers said they would switch providers if their financial institution charged a $5 monthly debit card fee. Overall, 93% of respondents said they either would use an alternative payment method such as cash, check or credit, or just switch providers.
