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-WE tv Poll: As women earn and learn more, traditional gender roles still drive dating scene

By JENNIFER AGIESTA, Associated Press

 WASHINGTON (AP) — Who ever said the dating game was logical?

 A new Associated Press-WE tv poll turns up all kinds of contradictions when people lay out their thoughts on dating, especially when it comes to money and gender roles.

 Seven in 10 of those surveyed say it’s unacceptable to expect a date to pay for everything. But most still say it’s a man’s job to pay for the first date.

Most say it’s OK to ask someone out because he or she seems successful. But even more say it’s unacceptable to turn down people because they haven’t had much success.

One-third think it’s OK to search for online clues about a potential first date’s success in life. But very few say daters should pay attention to each other’s finances before they are exclusive.

Overall, the traits that men and women rate as important hew to traditional gender roles.

Men and women agree that personality is the most important trait to consider when deciding whether to go on a first date with someone, and very few say money is a top consideration. Yet for men, a sense of humor outweighs intelligence, and they are more apt than women to prioritize looks. Most women place greater emphasis on a suitor’s financial situation and career ambitions.

It’s not just older people who feel that way. The differences are amplified among younger singles. About half of single men under age 45 say looks are a priority, while 70 percent of single women under 45 call career ambitions key.

There’s a clear gender gap on finances.

Men are less likely than women to say they’re comfortable dating someone who makes significantly more money than they do. Seventy-one percent of women would be comfortable in that situation, compared with 59 percent of men. Women are more wary of dating someone who earns less. Forty-three percent of men would be OK dating someone with a significantly lower salary, but just 28 percent of women would.

More broadly, uncoupled Americans are squeamish about dating those whose financial situations may not equal their own.

A shaky financial past is generally acceptable, and more say they’re comfortable dating someone who grew up in a poor family than in a wealthy one. But a questionable present inspires doubt.

Just 16 percent say they would be comfortable dating someone who is unemployed, and 23 percent say they would be comfortable dating someone with significant student loan debt.

Once dating turns to commitment and love, money is a bigger consideration for women when deciding whether to wed.

Among men who aren’t married or living with a partner, 84 percent say they’d marry someone they love regardless of whether she or he could provide financial security. Women are more cautious, with 61 percent would choose marriage for love without regard to financial standing.

Over time, Americans’ views on how women ought to balance family and career have shifted in favor of greater choice for women. But the poll also finds a more restrictive view on how men with a family ought to view their career, suggesting the rules many apply to dating continue once families are formed.

A Time/Yankelovich survey conducted in March 1978 found that about three-quarters of Americans felt women ought to put their husbands and children ahead of their careers and felt women with young children shouldn’t work outside the home unless it’s financially necessary. Now, about half hold those views.

But the AP-WE tv poll also found that half of Americans believe a man with a family has a responsibility to choose a higher-paying job over one that is more satisfying, compared with 42 percent who felt that way in 1978.

The poll was conducted in conjunction with WE tv ahead of the launch of the show “Mystery Millionaire.”

The poll was conducted May 16-19 using KnowledgePanel, GfK’s probability-based online panel designed to be representative of the U.S. population. It involved online interviews with 1,354 adults, including an oversample of 310 adults who have never been married. Results for all respondents have a margin of sampling error of plus or minus 3 percentage points.

Respondents were first selected randomly using phone or mail survey methods and were 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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AP News Survey Specialist Dennis Junius contributed to this report.

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Online:

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


AP-GfK Poll: Sign-up success fails to translate into broad approval for Obama’s health law

By RICARDO ALONSO-ZALDIVAR and JENNIFER AGIESTA, Associated Press

 WASHINGTON (AP) — President Barack Obama celebrated when sign-ups for his health care law topped 8 million, far exceeding expectations after a slipshod launch. Most Americans, however, remain unimpressed.

 A new Associated Press-GfK poll finds that public opinion continues to run deeply negative on the Affordable Care Act, Obama’s signature effort to cover the uninsured. Forty-three percent oppose the law, compared with just 28 percent in support.

 The pattern illustrates why the health care law remains a favored target for Republicans seeking a Senate majority in the midterm elections.

 The poll does have a bright spot for the administration: Those who signed up for coverage aren’t reeling from sticker shock. Most said they found premiums in line with what they expected, or even lower.

But even that was diminished by another finding: More than one-third of those who said they or someone in their household tried to enroll, were ultimately unable to do so. For the White House, it’s an uncomfortable reminder of the technical problems that paralyzed the HealthCare.gov website for weeks after it went live last fall.

The example of business owner Henry Kulik shows some of the cross-currents of public opinion.

Kulik is disabled as a result of Lou Gehrig’s disease, a condition that destroys the brain’s ability to control muscle movement. His family runs several stores that sell ice cream and other summer refreshments in the Philadelphia area.

Kulik says he doesn’t believe the federal government should require people to carry health insurance, as the law does. And he can understand worries about the cost to taxpayers. On the other hand, he’s been able to slash what his family pays for health insurance by purchasing coverage through the law’s new insurance markets and by taking advantage of tax credits to lower the premiums.

Before the law, his family was paying $2,400 a month. Now it’s several hundred dollars. And Kulik says the insurance for himself, his wife, and three children is comparable to what they had before.

‘‘I think there is a lot of misinformation,’’ he says.

Obama’s health care law offers subsidized private coverage to middle-class people who have no health plan on the job, and it expands Medicaid to pick up low-income uninsured adults. But last fall’s launch of new health insurance markets was paralyzed technical problems. The debacle contributed to the departure of health secretary Kathleen Sebelius.

After Congress approved the law in 2010, a political backlash over its Medicare cuts, tax increases and new regulations helped Republicans win the House. This fall the GOP is following a similar strategy with the Senate at stake.

‘‘Republicans hold an advantage on this issue among people who feel strongly about it,’’ said Robert Blendon of the Harvard School of Public Health, who follows opinion trends on health care.

Still, just 17 percent of poll respondents said the law will be completely repealed. While that represents an increase of 5 percentage points from March, the poll found that 67 percent believe the health law will be implemented with changes, whether major or superficial.

In Walhalla, South Carolina, digital publisher Greg Freeman says he’s no big fan of the president. But now into his late 30s, Freeman thought it would be a good idea to get health insurance through the new law. It took several tries to navigate the federal enrollment website, but Freeman says he’s generally satisfied. His main complaint is that his new doctor is about an hour away, in a bigger town to the east.

‘‘I can see if some of the kinks can be worked out this could be a very positive thing in the long run,’’ Freeman said. ‘‘We should be in a position to be healthiest country in the world.’’

The poll found that sign-up success translated into higher approval for the health care law. Among those who succeeded in purchasing coverage, 51 percent back the law, compared with 30 percent among those who tried to sign up and weren’t successful.

In the tiny coastal Oregon town of Reedsport, locksmith Marvin Plunkett says he’s disappointed that public opinion about the law remains so negative. He was able to gain coverage through the state’s expanded Medicaid program.

Plunkett recalled former Alaska Gov. Sarah Palin’s discredited charge that the law would set up ‘‘death panels’’ to judge whether seniors should receive medical care. ‘‘The truth about it is pretty mundane,’’ he said. ‘‘But the lies are really exciting and emotional.’’

The AP-GfK Poll was conducted May 16-19, 2014 using KnowledgePanel, GfK’s probability-based online panel designed to be representative of the U.S. population. It involved online interviews with 1,354 adults, and has a margin of sampling error of plus or minus 3 percentage points for all respondents.

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Associated Press News Survey Specialist Dennis Junius contributed to this report.

Online:

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