20 September 2014

Americans switch from cheques to cards - Fed

25 April 2014  |  5855 views  |  4 credit card

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.

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.

Comments: (4)

Bo Harald - ZEF and Real Time Economy Program - Esbo | 28 April, 2014, 10:02

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 - ZEF and Real Time Economy Program - Esbo | 28 April, 2014, 10:03

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

Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 28 April, 2014, 10:14

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

Matt White - Finextra - London | 28 April, 2014, 10:30

Billion.

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

05 February, 2014
22 January, 2014
11 September, 2013
18 January, 2013
19 April, 2011

Related company news

 

Featured job

to $120k base ($250k OTE including commission), be...
Boston, MA (USA)

Find your next job