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: Americans want tighter Ebola screening, concerned government hasn’t done enough

By LAURAN NEERGAARD and EMILY SWANSON, Associated Press

WASHINGTON (AP) — Americans overwhelmingly want tougher screening for Ebola, according to a poll released as federal health authorities took new steps to do just that.

Many are worried about Ebola spreading here, and two-thirds say the government hasn’t done enough to prevent that from happening, according to an Associated Press-GfK poll.

Some things to know:

THE PUBLIC WANTS MORE TRAVEL SCRUTINY

The AP-GfK poll found 9 out of 10 people — unusually high agreement on any issue — think it’s necessary to tighten screening procedures for people entering the U.S. from the outbreak zone in West Africa, including 69 percent who say it’s definitely needed.

Some would go even further: Almost half say it’s definitely necessary to prevent everyone traveling from places affected by Ebola from entering the U.S. Another 29 percent say it’s probably necessary to do so.

The Centers for Disease Control and Prevention has warned since summer that an infected traveler eventually would arrive in the U.S., and it finally happened last month when Thomas Eric Duncan developed symptoms of Ebola a few days after arriving from Liberia. He died on Oct. 8.

WHAT IS THE GOVERNMENT DOING

While Duncan wasn’t contagious during his flight, his arrival spurred U.S. officials to begin checking passengers arriving from Liberia, Sierra Leone and Guinea for a fever, an early Ebola symptom, just like they’re checked before leaving those countries.

The AP-GfK poll suggested that wasn’t enough.

Wednesday, the CDC moved to fill a gap in that screening: Starting next week, all of those travelers must be monitored for symptoms for 21 days, the Ebola incubation period. They’ll be told to take their temperature twice a day and must report the readings to state or local health officials.

That’s not just for West African visitors. It includes U.S. government employees, who had been doing their own 21-day fever watches upon return from fighting the epidemic, as well as doctors and other workers for aid organizations, and journalists.

WHY NOT A TRAVEL BAN

The Obama administration says that’s not on the table. Already, there are no direct flights to the U.S. from the outbreak zone, and the airport with the most travelers from West Africa — New York’s Kennedy airport — has averaged 34 travelers a day since entry screening began. Health experts say a travel ban would prevent medical supplies and health workers from reaching West Africa, and could drive travelers underground and hinder screening of potential Ebola carriers.

AMERICANS FEAR EBOLA’S SPREAD HERE

Nearly half of Americans are very or extremely concerned that Ebola will spread widely in the U.S. After all, two nurses caught it while caring for Duncan.

Health experts had hoped that fear would start to dwindle, considering that people who shared an apartment with Duncan while he was sick emerged healthy from quarantine this week — showing the virus isn’t all that easy to catch.

FEAR VS. KNOWLEDGE

But despite months of headlines about Ebola, nearly a quarter of Americans acknowledge they don’t really understand how Ebola spreads. Another 36 percent say they understand it only moderately well.

People who say they do are less concerned about Ebola spreading widely in this country. Among those who feel they have a good grasp on how it spreads, 46 percent are deeply concerned; that rises to 58 percent among those who don’t understand it as well.

Ebola doesn’t spread through the air or by casual contact, and patients aren’t contagious until symptoms begin. Ebola spreads through close contact with a symptomatic person’s bodily fluids, such as blood, vomit, feces, urine, saliva, semen or sweat.

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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Online:

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


AP-GfK Poll: Voters see GOP win in the offing, but they aren’t too fond of their choices

By JENNIFER AGIESTA and EMILY SWANSON, Associated Press

WASHINGTON (AP) — Two weeks before Election Day, most of the nation’s likely voters now expect the Republican Party to take control of the U.S. Senate, according to a new Associated Press-GfK poll. And by a growing margin, they say that’s the outcome they’d like to see.

But the survey suggests many will cringe when they cast those ballots. Most likely voters have a negative impression of the Republican Party, and 7 in 10 are dissatisfied by its leaders in Congress.

The Democrats win few accolades themselves. Impressions of the party among likely voters have grown more negative in the past month. In fact, Democrats are more trusted than the GOP on just two of nine top issues, the poll showed.

The economy remains the top issue for likely voters — 91 percent call it “extremely” or “very” important. And the GOP has increased its advantage as the party more trusted to handle the issue to a margin of 39 percent to 31 percent.

With control of the Senate at stake, both parties say they are relying on robust voter-turnout operations — and monster campaign spending — to lift their candidates in the final days. But the poll suggests any appeals they’ve made so far haven’t done much to boost turnout among those already registered. The share who report that they are certain to vote in this year’s contests has risen just slightly since September, and interest in news about the campaign has held steady.

Among all adults, 38 percent say they’d like the Democrats to wind up in control of Congress, to 36 percent for the Republicans. But the GOP holds a significant lead among those most likely to cast ballots: 47 percent of these voters favor a Republican controlled-Congress, 39 percent a Democratic one. That’s a shift in the GOP’s favor since an AP-GfK poll in late September, when the two parties ran about evenly among likely voters.

Women have moved in the GOP’s direction since September. In last month’s AP-GfK poll, 47 percent of female likely voters said they favored a Democratic-controlled Congress while 40 percent wanted the Republicans to capture control. In the new poll, the two parties are about even among women, 44 percent prefer the Republicans, 42 percent the Democrats.

In all, the poll finds that 55 percent of likely voters now expect Republicans to win control of the Senate, up from 47 percent last month. Democrats have grown slightly more pessimistic on this count since September, with 25 percent expecting the GOP to take control now compared with 18 percent earlier.

What’s deeply important to likely voters after the economy? About three-quarters say health care, terrorism, the threat posed by the Islamic State group and Ebola.

On foreign affairs, Republicans have the upper hand. By a 22-point margin, voters trust the GOP more to protect the country, and they give the Republicans a 10-point lead as more trusted to handle international crises. Democrats have a slim advantage on health care, 36 percent to 32 percent.

Although handling the Ebola outbreak was among the top issues for likely voters, the poll shows little sign that either party could capitalize on fears of the virus as an election issue. More than half said either that they trust both parties equally (29 percent) or that they don’t trust either party (24 percent) to handle public health issues like Ebola. The remaining respondents were about equally split between trusting Republicans (25 percent) and Democrats (22 percent).

Same-sex marriage? Only 32 percent said that was an extremely or very important issue to them personally, identical to the percentage saying so in September, before the Supreme Court effectively allowed same-sex marriages to proceed in five more states.

The poll, which asked likely voters whom they preferred among the candidates in the congressional district where they live, found Republicans hold an edge in the upcoming elections. Forty percent said they would vote for the GOP candidate in their House district, while 32 percent said the Democrat. About a quarter backed a third-party candidate or were undecided.

Although likely voters appear more apt to take the GOP side in the upcoming elections, the poll finds little difference between those most likely to cast a ballot and others on negative perceptions of the nation’s direction and leadership. Among all adults as well as just the likely voters, 9 in 10 disapprove of Congress, 7 in 10 say the nation is heading in the wrong direction, 6 in 10 disapprove of the way Barack Obama is handling his job as president and 6 in 10 describe the nation’s economy as “poor.”

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. Among 968 likely voters, the margin of sampling error was plus or minus 3.6 points.

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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Associated Press writer Philip Elliott contributed to this report.

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Follow Jennifer Agiesta on Twitter: http://www.twitter.com/JennAgiesta

Follow Emily Swanson on Twitter: http://www.twitter.com/el_swan

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Online:

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