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 finds most NFL fans believe Commissioner Roger Goodell should keep job

By RACHEL COHEN, Associated Press

NEW YORK (AP) — Most NFL fans believe Commissioner Roger Goodell should keep his job after his handling of recent domestic violence cases, according to a new Associated Press-GfK Poll.

Only 32 percent say Goodell should lose his job over the issue, with 66 percent saying he shouldn’t.

Support for his handling of the cases is much lower, though, with 42 percent saying they disapprove. The same percentage neither approve nor disapprove, with just 15 percent approving.

Goodell initially suspended Ray Rice for two games after the Baltimore Ravens running back was charged with assaulting his then-fiancee. The commissioner defended the punishment at first, before admitting more than a month later that he “didn’t get it right.”

When a video of the assault later surfaced, Goodell suspended Rice indefinitely, saying the images constituted new evidence. Rice was released earlier that day by the Ravens.

The poll shows strong support for keeping Rice off the field for at least some period of time. Forty-three percent of fans say Rice should never be allowed to play again. Just 7 percent say he should be able to play now, with 49 percent saying he should be permitted to return after missing more time.

Opinions differed by gender and race. Slightly more than half of women say Rice should never be allowed to play again, compared with 37 percent of men. Just 19 percent of black fans say he should receive a permanent ban, while 46 percent of white fans support that.

Respondents were more receptive to the idea of Minnesota Vikings star running back Adrian Peterson returning to the field. Peterson is currently on paid leave while he faces child abuse charges.

Fifty-four percent of fans say he should be allowed to play again if he is found not guilty, and another 29 percent say he should be able to return regardless of the case’s outcome. Only 15 percent say he should never play again.

Answers to this question also varied by gender and race. Thirty-four percent of men say Peterson should be allowed to return under any circumstances, compared with 22 percent of women. And 45 percent of black fans say he should be able to return no matter the verdict, while only 25 percent of white fans say that.

The poll suggests that the recent spate of highly publicized domestic violence cases has made a small dent in the NFL’s popularity. An AP-GfK Poll conducted in January found that 49 percent of respondents considered themselves fans of pro football. That number dropped to 43 percent in the current poll.

In January, 19 percent of respondents said their interest in the sport had increased in the previous five years, with 12 percent saying it had decreased. This time, 12 percent say it has increased while 15 percent say it has decreased.

Of the group with less interest, 42 percent say the recent domestic violence arrests have been an extremely or very important factor in that drop.

The AP-GfK Poll was conducted Sept. 25-29 using KnowledgePanel, GfK’s probability-based panel designed to be representative of the U.S. population. It included online interviews with 1,845 adults, including 836 NFL fans. The margin of sampling error is plus or minus 2.5 percentage points for all respondents and plus or minus 3.8 percentage points for the NFL fans.

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AP News Survey Specialist Emily Swanson contributed to this report.


AP-GfK Poll: Americans not confident in US government’s ability to minimize range of threats

By JILL COLVIN and JENNIFER AGIESTA, Associated Press

WASHINGTON (AP) — Americans lack confidence in the government’s ability to protect their personal safety and economic security, a sign that their widespread unease about the state of the nation extends far beyond politics, according to the latest Associated Press-GfK poll.

With Election Day about a month away, more than half those in the survey said Washington can do little to effectively lessen threats such as climate change, mass shootings, racial tensions, economic uncertainty and an unstable job market.

“I think what we’ve got going on here in America is the perfect storm of not good things,” said Joe Teasdale, 59, who lives in southwest Wisconsin and works as an assistant engineer at a casino.

For many of those questioned in the poll, conducted before doctors in Texas diagnosed a Liberian man with the Ebola virus, the concern starts with the economy.

The poll found that 9 in 10 of those most likely to vote in the Nov. 4 election call the economy an extremely or very important issue. Teasdale is among those who say the slow recovery from the recession is a top concern.

Despite improvements nationally, business is far from booming in his state, Teasdale said. He’s been supplementing his stagnant salary by renovating and renting out duplexes and has little faith the situation will improve soon. He wants government to get out of the way of business.

“If you’re putting so much restriction on them where it isn’t practical for them to expand or grow, why should they?” Teasdale asked.

Those surveyed also pointed to events such as the protests in Ferguson, Missouri, that followed the fatal police shooting an unarmed black 18-year-old and the beheading of a woman in an Oklahoma food processing plant, apparently at the hand of a suspended co-worker.

“This is the first time I’ve felt insecure in my own country,” said Jan Thomas, 75, of Stevensville, Montana. “Especially after the beheading in Oklahoma. That’s scary.”

The poll found that Democrats tend to express more faith in the government’s ability to protect them than do Republicans. Yet even among Democrats, just 27 percent are confident the government can keep them safe from terrorist attacks. Fewer than 1 in 5 say so on each of the other issues, including climate change.

“There’s too many people who still don’t believe that it’s happening,” bemoaned Felicia Duncan, 53, who lives in Sharonville, Ohio, a suburb of Cincinnati, and works as an office manager at a mechanical contracting company.

Urbanites tend to be more confident the government will keep them safe from terrorist threats than do people living in suburbs and rural areas. Younger Americans are more confident than older people that the government can minimize the threat of mass shootings. When it comes to quelling racial tensions, Hispanics are more confident than are blacks and whites.

Thirteen years after the Sept. 11 attacks, and as the Obama administration conducts airstrikes against Islamic State militants in Syria and Iraq, only 1 in 5 in the poll say they are extremely or very confident the government can keep them safe from another terrorist attack. Four in 10 express moderate confidence.

While there has not been a large-scale terrorist attack on U.S. soil since 9/11, roughly one-third of Americans say they are not too confident or not confident at all in the government’s ability to prevent another.

Bill Denison, 85, who lives in Bradenton, Florida, is among the minority who thinks the government is doing a good job keeping citizens safe, at least when it comes to preventing domestic attacks.

“Overall I think that the best job that we’ve done in this country is with anti-terrorism,” he said. “We’re doing a magnificent job and so far it’s been pretty successful.”

Still, he expressed disbelief at the recent security breaches involving Secret Service agents, including an incident in which a man scaled the White House fence and made his way deep into the executive mansion.

“The fact that a guy can run into the White House is pretty disturbing,” he said. “But we’re only human. And humans are going to make mistakes.”

The AP-GfK Poll was conducted September 25-29, 2014, using KnowledgePanel, GfK’s probability-based panel designed to be representative of the U.S. population. It involved online interviews with 1,845 adults, and has a margin of sampling error of plus or minus 2.5 percentage points for all respondents.

Respondents were selected randomly using telephone or mail survey methods, and later interviewed. People selected for KnowledgePanel who didn’t otherwise have access to the Internet were given free access.

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Associated Press writer Janet McConnaughey in New Orleans contributed to this report.

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Online:

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