By CANDICE CHOI

Americans prefer using their debit cards at the register. But a small fee could change that.

A new Associated Press-GfK poll finds that about two-thirds of consumers use debit cards more frequently than credit cards. But when debit card holders were asked how they would react if they were charged a $3 monthly fee for their debit card, 61 percent say they’d find another way to pay.

If the fee was $5, 66 percent would do the same. If the fee was $7, the figure rises to 81 percent.

The findings come at a time when consumers are seeing unwelcome changes to their debit cards and the checking accounts to which they’re linked. Although banks haven’t started imposing monthly fees for debit cards, there are signs higher costs could be on the way.

Starting in October, a new cap will sharply limit the revenue banks can collect from merchants whenever customers swipe their debit cards. That revenue has been a critical income source for banks; merchants paid issuers $19.7 billion for debit transactions in 2009, according to the Nilson Report, which tracks the payments industry.

Consumers are already seeing the fallout. Chase, PNC Bank and Wells Fargo ended or scaled back their debit rewards programs citing the new regulation. The availability of free checking accounts also declined last year for the first time since 2003.

And more changes could be in store.

Chase, for example, is testing a $3 monthly fee for debit cards on new accounts in northern Wisconsin. In Atlanta, it’s testing a $15 monthly fee on basic checking accounts.

Among the AP-GfK poll respondents who say they would leave their debit cards in their wallets in the face of such fees, more say they’d pay with cash, 53 percent, or check, 42 percent, rather than another form of plastic.

“Cash or checks — they’re not very expensive,” said Aaron Alto, a 44-year-old resident of Grand Rapids, Minn. Alto says he’d be annoyed enough to look for an alternative to his debit card if the fees approached $10.

Debit card fees would cause 22 percent to switch to credit cards, and 12 percent say they would switch to a prepaid spending card.

For now, the notable preference for debit could be linked to a negative sentiment about credit cards; nearly half of respondents to the AP-GfK poll say the interest rates they’re charged are unfair.

That may be because 30 percent had their interest rates hiked in the past two years. That’s more than twice the number who say their rates were lowered.

Forty-two percent of respondents also say the fees and penalties on their cards are unfair; 37 percent say card issuers recently raised those potential charges.

The higher rates and fees may have surprised consumers in light of the new regulations that were intended to protect cardholders and put an end to questionable billing practices.

Under the rules that went into effect last February, cardholders are now entitled to 45 days notice before their rates are hiked. Card issuers are also prohibited from raising rates on existing balances, a once-common practice that consumer advocates had long decried.

Additionally, the one-time penalty fees for late payments are capped at $25 per violation. But there’s no limit on how high banks can hike interest rates on purchases or the default interest rates that kick in when customers are late on payments.

Earl Law, a 61-year-old resident of Buffalo, N.Y., said the penalty rate on a few of his cards is 30 percent.

“It’s absurd. It’s usurious,” he said. “If you’re struggling with debt, that’s the last thing you need. You’re asking people to fail.”

Despite the widespread discontent with interest rates, the regulations are having a clear, positive impact in one area: monthly statements. Nearly half of respondents say they’re now easier to understand.

Part of the reason is that the new law requires credit card issuers to spell out the cost of carrying a balance. For example, statements now include a chart that shows how long it would take to pay off a balance if only minimum payments were made. The chart also includes the total amount the cardholder would pay over that time, including interest charges.

The increased transparency might be one reason why the majority of consumers — 78 percent — say they plan to stick with their cards, despite their grumblings about high rates and fees.

It could also be that consumers have grown numb to unpleasant changes. In the months leading up to the passage of the new regulations, many cardholders saw their interest rates hiked, credit limits slashed and inactive accounts shut down.

The poll was conducted June 16-20 by GfK Roper Public Affairs and Corporate Communications. It involved landline and cell phone interviews with 1,001 adults nationwide, including 715 who have credit cards and 706 debit card holders. Results from the full sample have a margin of sampling error of plus or minus 4.1 percentage points; it is 4.8 points for those with credit or debit cards.

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Associated Press Polling Director Trevor Tompson, Deputy Polling Director Jennifer Agiesta and AP News Survey Specialist Dennis Junius contributed to this report.

Online:

Poll results: http://www.ap-gfkpoll.com

 

 

How the poll was conducted

By The Associated Press

The Associated Press-GfK Poll on changes to credit card laws was conducted by GfK Roper Public Affairs & Corporate Communications from June 16-20. It is based on landline and cellphone interviews with a nationally representative random sample of 1,001 adults. Interviews were conducted with 700 respondents on landline telephones and 301 on cellphones. The sample included 715 credit card holders and 706 debit card holders.

Digits in the phone numbers dialed were generated randomly to reach households with unlisted and listed landline and cellphone numbers.

Interviews were conducted in both English and Spanish.

As is done routinely in surveys, results were weighted, or adjusted, to ensure that responses accurately reflect the population’s makeup by factors such as age, sex, education and race. In addition, the weighting took into account patterns of phone use — landline only, cell only and both types — by region.

No more than one time in 20 should chance variations in the sample cause the results to vary by more than plus or minus 4.1 percentage points from the answers that would be obtained if all adults in the U.S. were polled. For results among credit card holders and debit card holders, the margin of sampling error is plus or minus 4.8 percentage points.

There are other sources of potential error in polls, including the wording and order of questions.

The questions and results are available at http://www.ap-gfkpoll.com .

 


AP-GfK Poll: Economy, other issues overshadow abortion

DENVER (AP) — As a season of campaigning enters its final, intense weekend, a new Associated Press-GfK poll illustrates the challenge ahead for candidates and their allies trying to rally voters around traditional wedge issues such as abortion and gay marriage. This fall, voters just have other matters on their minds.

Social issues are eclipsed by concerns about the economy, health care, the Islamic State group and Ebola, the poll finds. And hovering over each of these individual issues is a broad dissatisfaction with President Barack Obama and Republican leaders in Congress.

Only 32 percent of likely voters called gay marriage an important issue, compared with 91 percent ranking the economy important, 78 percent with similar concerns about health care and 74 percent naming Ebola important. The issue that some Democrats have emphasized most of all — abortion rights — also has been a relatively low priority, with only 43 percent of likely voters in a September poll ranking it important.

Yet women’s health and reproductive rights have been at the center of campaigns for U.S. Senate in Alaska, Iowa, North Carolina and especially Colorado. There, half of the ads aired by Democratic Sen. Mark Udall and those backing his re-election have criticized his GOP opponent, Rep. Cory Gardner, on women’s health issues. They include a contention the 40-year-old congressman from eastern Colorado wants to ban some forms of birth control.

“Democrats this year clearly think that all that you need is that silver bullet of social issues,” said Katy Atkinson, a GOP political official in Denver. “It’s not. You need more.”

Gardner may have been able to parry the offensive by proposing that birth control pills be sold over-the-counter, without a prescription. After he began airing an ad on his proposal last month — as security concerns rose amid U.S. military action against the Islamic State group in the Middle East and the West Africa outbreak of the Ebola virus — Gardner moved ahead in public polls.

Gardner isn’t the only Republican to propose the sale of birth control over-the-counter. So, too, have Republicans running for Senate in North Carolina, Virginia and Minnesota.

The issue of access to birth control has also found its way into the Senate race in Iowa, where Democratic Rep. Bruce Braley has hammered his Republican opponent, state Sen. Joni Ernst, for her support of bestowing personhood status on a fetus. He says that would outlaw abortion, in-vitro fertilization and most kinds of contraception; she says she supports access to birth control and abortion in some circumstances.

Some voters have scoffed at the emphasis.

“They do a lot of yapping about how contraceptives have to do a lot with women’s health, which is a load of crap,” said Donald Johnson, 82, a staunch Republican in Clinton, Iowa. “If they want contraception, they can go and get it. It doesn’t cost that much. There’s no reason the government should be paying for it.”

On both abortion and same-sex marriage, recent AP-GfK polling has found likely voters more apt to trust Democrats than Republicans. But on issues that have captured more of voters’ attention this midterm season, such as the economy and protecting the country, Republicans have the advantage.

Republicans have emphasized terrorism and Ebola threats in the campaign’s closing days, though the poll suggests Ebola inspires less of a partisan preference than other issues.

Cindy Nath, a 59-year-old high school teacher in Colorado Springs, is most worried about economic inequality but also has concerns about reproductive freedom. A Democrat, she’s already cast an early ballot for Udall. But the issues her students discuss are very different — the Islamic State group and Ebola. “That’s what they’re talking about,” she said. “ISIS comes up every day.”

Women’s votes have shifted sharply between presidential years and midterm elections in recent contests, according to exit polling conducted for the AP and ABC, CBS, CNN, Fox and NBC. In 2012, women broke for Obama by an 11-point margin, while in 2010, when few candidates raised social issues as a major campaign theme, they split evenly between Democratic and Republican House candidates.

Atkinson noted that social issues usually poll low in priority but can be effective in defining candidates as too extreme. That’s how Democrats have won recently in Colorado. Although polling shows Udall slightly behind, his campaign believes he can win with a superior get-out-the-vote operation and by continuing to use women’s health issues to motivate key voting groups. Democrats are particularly targeting single women, whose participation dips in midterm elections.

The model is Sen. Michael Bennet’s 2010 come-from-behind win, where he similarly focused on women’s health. Still, a gender gap cuts both ways. Several recent polls in Colorado have shown Gardner’s advantage among men outpaces Udall’s among women.

But Jill Hanauer, a Denver-based Democratic strategist, said people should not mistake a temporary issue advantage for something permanent.

“Republicans have immediate issues to run on and Democrats have much broader, long-term ones like climate change and reproductive rights,” Hanauer said. “This election is one point in time, not a long-term trend.”

The AP-GfK Poll was conducted Oct. 16-20, using KnowledgePanel, GfK’s probability-based panel designed to be representative of the U.S. population. It involved online interviews with 1,608 adults and has a margin of sampling error of plus or minus 2.8 percentage points for all respondents.

Respondents were first selected randomly using phone or mail survey methods and later interviewed online. People selected for KnowledgePanel who didn’t otherwise have access to the Internet were provided with the ability to access the Internet at no cost to them.

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Agiesta, AP’s director of polling, reported from Washington. Associated Press writers Stacy A. Anderson and Emily Swanson contributed to this report.

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Online:

AP-GfK Poll: http://www.ap-gfkpoll.com


AP-GfK Poll: 2 of 3 Americans think the threat posed by Islamic State is very important

By DEB RIECHMANN and EMILY SWANSON, Associated Press

WASHINGTON (AP) — Sixty-five percent of Americans now say the threat from the Islamic State group is very or even extremely important, and nearly half think the U.S. military response in Iraq and Syria has not gone far enough, according to an Associated Press-GfK poll. Most want to see America’s partners step up their contribution to the fight,

Less than half, 43 percent, approve of the way President Barack Obama is handling the danger posed by the extremist militants.

Greg Franke, 24, of Columbia, South Carolina, was among the 55 percent of those who disapproved. Franke, a 24-year-old assistant editor at a research library, said he thought Obama was too hesitant in responding to the militants, who have employed brutal tactics to swiftly seize territory.

“I understand the need to be hesitant, but this was a group that was marching across parts of the Middle East, which is already unstable,” Franke said. “I think it warranted a swift and more decisive response.”

“I also think that his declaration that U.S. troops would not be involved was premature,” he said. “I don’t want U.S. troops involved. But I don’t think we need to close doors.”

A majority, 66 percent, favor the airstrikes the United States has been launching against the militants, yet 65 percent of those surveyed say Obama has not clearly explained America’s goal in fighting the Islamic State group. The president met with his national security team on Friday to discuss the Islamic State and talk via video teleconference with U.S. officials at the American Embassy in Baghdad and consulates in Irbil and Basra.

Here’s a look at the poll:

IS ENOUGH BEING DONE?

Forty-six percent said the U.S. military response has not gone far enough — up from 40 percent in September. Fifty-six percent said the military response from countries that have joined the U.S. in the fight against Islamic State militants has not gone far enough. The U.S. and partner countries, including Qatar, Saudi Arabia and the United Arab Emirates, have been bombing Islamic State targets since August.

“It shouldn’t just be us. It shouldn’t just be ‘Oh, the United States is policing.’ It should be everyone is there policing and everybody believes this is wrong and everyone — worldwide — is trying to stop this,” said Kathy Robinson, 24, a Sterling, Virginia, woman who works at an information technology company.

At the same time, she thinks the United States eventually will put troops on the ground in the region “just to make sure nothing starts back up — to keep the peace.”

Only 32 percent think Obama has done a good job in clearly stating U.S. policy against the IS group. More than six in 10 of them think it’s either not likely or only moderately likely that the U.S. and its partners will achieve their goal in fighting IS.

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ARE AMERICANS FOLLOWING DEVELOPMENTS IN IRAQ, SYRIA?

While 47 percent of those surveyed said there’s a very or extremely high risk of another terror attack inside the United States, just a third said they have been keenly following the news about the U.S. military action against IS. An additional 38 percent said they were following the action somewhat closely, and 31 percent said they were keeping up not too closely or not closely at all.

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DO PEOPLE SUPPORT THE AIRSTRIKES?

While Americans support the airstrike, when it comes to supporting the idea of deploying U.S. ground troops, respondents were more guarded.

Thirty-seven percent said they opposed putting American forces on the ground, 33 percent favored the idea and 28 percent said they were neither for nor against it.

Obama has said repeatedly that he has no plans to send ground troops to Iraq or Syria. However, 28 percent thought it was very or extremely likely that he would, and an additional 45 percent thought it was moderately likely. Just 24 percent said it was not likely.

Michael Rainwater, 64, of Sammanish, Washington, doesn’t particularly want to see U.S. troops sent in, but thinks they might be deployed at some point.

“I think all of these things tend to escalate,” he said. “You can’t keep pouring fuel on the fire and expect the fire to get smaller. So every time we bomb or send in armed drones, you are creating more terrorists.”

He does not think, though, that the Islamic State is in a position to mount a 9/11-style attack against the U.S.

Said Rainwater, a retired software company owner: “It is more of a criminal entity because basically what they are doing is kidnapping people for ransom, taking over oil refineries for the income.”

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The AP-GfK Poll was conducted Oct. 16-20 using KnowledgePanel, GfK’s probability-based panel designed to be representative of the U.S. population. It involved online interviews with 1,608 adults, and had a margin of sampling error of plus or minus 2.8 percentage points for all respondents. Respondents were selected randomly using phone or mail survey methods, and later interviewed. People selected for KnowledgePanel who didn’t otherwise have access to the Internet were given free access.