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-Times Square Poll: Shootings Weighed on Americans in 2015
By Verena Dobnik, Associated Press
Mass shootings and attacks weighed heavily on the minds of Americans in 2015, according to a new poll that found most believe this year was worse for the world than last year.A look at the key findings of The Associated Press-Times Square Alliance poll:

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PREOCCUPIED BY MASS SHOOTINGS

Americans say the most important events of 2015 were a string of mass shootings, including the attacks in San Bernardino, California, and Paris, plus Islamic State group atrocities.

Fifty-seven percent of those polled say this year was worse than the last year for the world as a whole, up from the 38 percent asked that question a year ago. Only 10 percent believe 2015 was a better year than 2014, while 32 percent think there wasn’t much difference.

Americans also are much less likely than they were a year ago to believe that the current year was better for the United States — only 17 percent compared with 30 percent a year ago. Thirty-seven percent think this year was worse for the country than last year, while 44 percent don’t think there was much difference.

On a personal level, fewer than a third (29 percent) believe 2015 was better for them than 2014, while 21 percent feel it was worse, compared with 15 percent in 2014.

Interviewed separately from the poll, Jason Pruitt, a 43-year-old corporate pilot from the Detroit area, said security concerns were a factor in deciding whether to take his wife and daughter along on a Christmas trip to New York.

“We were thinking about not coming this year, because of everything that’s going on,” Pruitt said. But they went ahead “because when you change your life, the terrorists win.”

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THREE EVENTS SHARE THE TOP SPOT

Of those polled, 68 percent listed mass shootings in the U.S. as very or extremely important news events this year, including the one in San Bernardino that heightened fears of domestic terrorism, plus shootings in Charleston, South Carolina; Roseburg, Oregon; and Chattanooga, Tennessee.

Close behind, at 64 percent, were the Paris attacks that ushered in 2015, targeting Charlie Hebdo and the Jewish market, then the Bataclan concert hall and other city sites in November.

And third, at 63 percent, came the Islamic State group’s various far-flung atrocities.

Commenting on the completed poll was 32-year-old J.P. Fury, working in a food truck in Times Square.

“At this point, I’m numb to all of it,” he said. “This is nothing new. Every week there’s a new shooting somewhere in America, and there’s a new terrorist attack somewhere around the world.”

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OTHER ISSUES

Domestically, 44 percent of those polled rate as extremely or very important the deaths of blacks in encounters with police that sparked “Black Lives Matter” protests in Baltimore and Chicago.

Another 44 percent rate the deal reached to curtail Iran’s nuclear program as important, and nearly as many (42 percent) Europe’s migrant crisis.

Only 40 percent said the presidential race was important to them, with the Paris climate change conference right behind (at 38 percent), followed by the Supreme Court’s legalization of gay marriage (36 percent) and the Cuban-U.S. thaw (30 percent).

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RINGING IN THE NEW YEAR

Most Americans plan to celebrate New Year’s Eve either at home (48 percent) or at the home of a friend or family member (20 percent). Nine percent plan to be at a bar, restaurant or organized event, while just under a quarter (22 percent) don’t plan to celebrate at all.

A majority of Americans (56 percent) will watch the New Year’s Eve events in Times Square, and 95 percent of those will see it on TV.

Those findings were similar to those of the past two years.

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THE YEAR IN POP CULTURE

No single pop culture event of 2015 stands out, with fewer than four in 10 Americans rating any as memorable.

The eagerly awaited “Star Wars: The Force Awakens” was memorable only to 37 percent of those polled, and forgettable to 34 percent.

Bill Cosby’s legal woes were memorable to 36 percent; forgettable to 33 percent.

Bruce Jenner becoming Caitlyn Jenner, with a highly orchestrated publicity campaign, was forgettable to 52 percent, and Taylor Swift’s world tour to 55 percent.

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METHODOLOGY

The AP-Times Square Alliance Poll of 1,020 adults was conducted online Dec. 11-13, using a sample drawn from GfK’s probability-based KnowledgePanel, which is designed to be representative of the U.S. population. The margin of sampling error for all respondents is plus or minus 3 percentage points.

The poll is a cooperative effort between AP and the organizers of the Times Square New Year’s Eve Celebration, the Times Square Alliance and Countdown Entertainment. The Alliance is a nonprofit group that seeks to promote Times Square, and Countdown Entertainment represents the owners of One Times Square and the New Year’s Eve Ball Drop.

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 access at no cost to them.

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Online:

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


AP-GfK Poll: Support for legal abortion at highest level in 2 years

WASHINGTON (AP) — Support for legal abortion in the U.S. has edged up to its highest level in the past two years, with an Associated Press-GfK poll showing an apparent increase in support among Democrats and Republicans alike over the last year.

Nearly six in 10 Americans — 58 percent — now think abortion should be legal in most or all cases, up from 51 percent who said so at the beginning of the year, according to the AP-GfK survey. It was conducted after three people were killed last month in a shooting at a Planned Parenthood clinic in Colorado.

While support for legal abortion edged up to 40 percent among Republicans in this month’s poll, from 35 percent in January, the survey found that the GOP remains deeply divided on the issue: Seven in 10 conservative Republicans said they want abortion to be illegal in most or all cases; six in 10 moderate and liberal Republicans said the opposite.

 Count 55-year-old Victor Remdt, of Gurnee, Illinois, among the conservatives who think abortion should be illegal in most cases. He’s adopted, and says he “wouldn’t be here talking” if his birth mother had opted for abortion rather than adoption. Remdt, who’s looking for work as a commercial driver, said he’d like to see abortion laws become more restrictive but adds that he’s not a one-issue voter on the matter.
 John Burk, a conservative Republican from Houston, Texas, is among those whose position on abortion is somewhere in the middle. He reasons that banning the procedure would only lead to “back-alley abortions.” But he’s open to restrictions such as parental notification requirements and a ban on late-term abortions.

Burk, a 59-year-old computer programmer, said he tracks his beliefs on the issue to his libertarian leanings and the fact that he’s not religious. He doesn’t see the nation coming to a resolution on the divisive issue any time soon, saying hard-liners on both sides of the question are entrenched and “they’re never going to change.”

Among Democrats, 76 percent of poll respondents now think abortion should be legal all or most of the time, up slightly from 69 percent in January.

Independents are more evenly split, with 54 percent saying abortion should be legal all or most of the time, edging up from 43 percent in January.

For Larry Wiggins, who describes himself as a liberal Democrat from Henderson, North Carolina, legal access to abortion should be — but isn’t — a settled matter.

“A woman has the right to decide what she wants to do with her body,” he said flatly. “I don’t think the government has the right to interfere.”

Nefertiti Durant, a 45-year-old independent voter from Columbia, Maryland, sees abortion as more complex matter, calling it “kind of a Catch-22.” She thinks a woman should have the right to choose abortion but she’s “not so keen on the fact that just anybody can go and have an abortion.” She worries that young people may not understand the effects of the procedure, and the “deep issues” that go along with it.

Still, she said, abortion is legal and “let’s just leave it at that. … I don’t think it’s a matter of discussion.”

It undoubtedly will be up for discussion, though, in a presidential election year. All of the Republican presidential candidates say they favor restricting abortion rights. The Democratic candidates support broad abortion rights.

Interest in the issue picked up this year after anti-abortion activists began releasing undercover videos they said showed Planned Parenthood personnel negotiating the sale of fetal organs. Planned Parenthood said any payments were legally permitted reimbursements for the costs of donating organs to researchers, and it has since stopped accepting even that money. Republicans have sought to cut off federal funding for Planned Parenthood, and several GOP-governed states have tried to block Medicaid funding to the organization.

Overall, the poll found, 45 percent of Americans have a favorable opinion of Planned Parenthood, and 30 percent have an unfavorable opinion. A quarter said they don’t know enough about the organization to say.

The AP-GfK Poll of 1,007 adults was conducted online Dec. 3-7, using a sample drawn from GfK’s probability-based KnowledgePanel, which is designed to be representative of the U.S. population. The margin of sampling error for all respondents is plus or minus 3.4 percentage points. Respondents were first selected randomly using telephone or mail survey methods, and later interviewed online. People selected for KnowledgePanel who didn’t otherwise have access to the Internet were provided access at no cost to them.

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Online:

http://ap-gfkpoll.com

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