Americans switch from cheques to cards - Fed

Card payments have soared in popularity in the US over the last 10 years and now account for more than two thirds of all non-cash payments, according to Federal Reserve figures.

  9 4 comments

Americans switch from cheques to cards - Fed

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The Fed's latest 'How We Pay' study (PDF) reveals that 122.8 billion non-cash payments were made in 2012, up 4.4% on 2009. The value of these payments rose from $72.2 trillion to $79 trillion.

Cards made up 67% of all non-cash payments in 2012, up from 43% in 2003. Debit cards dominate, making up 38% of payments - 47 billion transactions. Credit cards account for 21% and pre-paid seven per cent.

The use of ACH has also grown, albeit more modestly, accounting for 18% of non-cash payments in 2012, up from 11% in 2003.

In contrast, cheque usage has plummeted, falling from 46% in 2003 to just 15% in 2012. Remote deposit capture has seen modest growth, with 17% of cheques deposited as an image in 2012, compared to 13% in 2010.

When it comes to value, cheques still made up 33% - $26 trillion - of payments in 2012, compared to just five per cent for cards and 61% for ACH.

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Comments: (4)

Bo Harald

Bo Harald Chairman/Founding member, board member at Trust Infra for Real Time Economy Prgrm & MyData,

Well - this happened overnight in Finland in 1983 - when we started to charge the equivalent of 8 cents per cheque form. Visible pricing made consumers move to a better deal for themselves. As should be done today for paper invoicing - they pay anyway  - why not visibly?

Bo Harald

Bo Harald Chairman/Founding member, board member at Trust Infra for Real Time Economy Prgrm & MyData,

https://www.finextra.com/blogs/Fullblog.aspx?blogid=8900

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

"...reveals that 122.8 non-cash payments...". 122.8 Million or Billion or...?

Matt White

Matt White North America editor at Finextra

Billion.

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