19 June 2018
Visit www.gemalto.com

Americans switch from cheques to cards - Fed

25 April 2014  |  9285 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
Bo Harald - ZEF, Transmeri, Demos, Real Time Economy Program - Helsinki Region 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?

Be the first to give this comment the thumbs up 0 thumb ups!
Bo Harald
Bo Harald - ZEF, Transmeri, Demos, Real Time Economy Program - Helsinki Region 28 April, 2014, 10:03

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

Be the first to give this comment the thumbs up 0 thumb ups!
Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 28 April, 2014, 10:14

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

Be the first to give this comment the thumbs up 0 thumb ups!
Matt White
Matt White - Finextra - Toronto 28 April, 2014, 10:30

Billion.

1 thumb up! 1 thumb up!
Comment on this story (membership required)

Finextra news in your inbox

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

Related stories

US Federal Reserve pushes ahead with Faster Payments planning

US Federal Reserve pushes ahead with Faster Payments planning

05 February 2014  |  11660 views  |  8 comments | 16 tweets | 16 linkedin
Mobile account opening and RDC skyrockets in US

Mobile account opening and RDC skyrockets in US

22 January 2014  |  6777 views  |  0 comments | 15 tweets | 11 linkedin
Fed looks to faster payments and mobile technologies in policy consultation

Fed looks to faster payments and mobile technologies in policy consultation

11 September 2013  |  12642 views  |  0 comments | 10 tweets | 11 linkedin
Fed preps study on US non-cash payments usage

Fed preps study on US non-cash payments usage

18 January 2013  |  9017 views  |  0 comments | 11 tweets | 7 linkedin
Americans turn from cards to cash during recession

Americans turn from cards to cash during recession

19 April 2011  |  8816 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.abe-eba.euVisit https://info.nice.com/Visit www.aciworldwide.com

Who is commenting?

A Finextra member Finextra Member Commented on: BIS: Cryptocurrencies...
A Finextra member Finextra Member Commented on: BIS: Cryptocurrencies...
A Finextra member Finextra Member Commented on: Monzo launches bill tr...
A Finextra member Finextra Member Commented on: NatWest taps Open Bank...
A Finextra member Finextra Member Commented on: HSBC promises $17bn in...

Top topics

Most viewed Most shared
10,000 jobs could be lost to robots says Citi10,000 jobs could be lost to robots says C...
48865 views comments | 44 tweets | 35 linkedin
Ripple exec says DLT not ready for banks...yetRipple exec says DLT not ready for banks.....
10652 views comments | 9 tweets | 32 linkedin
UK launches £2.5bn startup initiativeUK launches £2.5bn startup initiative
9511 views comments | 30 tweets | 26 linkedin
HSBC promises $17bn investment in technologyHSBC promises $17bn investment in technolo...
8418 views comments | 8 tweets | 21 linkedin
NatWest taps Open Banking for cardless online paymentsNatWest taps Open Banking for cardless onl...
8079 views 11 comments | 12 tweets | 12 linkedin

Featured job

Six-Figure Base + OTE + Benefits
London, UK

Find your next job