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.


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


Poll results:



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 .


AP-GfK Poll: Clerks must issue gay marriage licenses
WASHINGTON (AP) — Linda Massey opposes gay marriage. But she was incensed last summer to see that Kim Davis, a Kentucky county clerk, was refusing to issue marriage licenses to gay couples.

“If the government says you have to give out those marriage licenses, and you get paid to do it, you do it,” says the 64-year-old retiree from Lewiston, Michigan. “That woman,” she said of Davis, “should be out of a job.”

Americans like Massey are at the heart of a shift in public opinion, an Associated Press-GfK poll has found. For the first time, most Americans expect government officials to issue marriage licenses to same-sex couples, even over religious objections.

It’s partly a matter of expecting public servants to do their jobs. But more broadly, the issue touches on a familiar dispute over which constitutional value trumps which: religious freedom, or equality under the law?

The question in recent months has entangled leaders with political sway, among them Pope Francis and the 2016 presidential contenders. But it’s not a new conflict for a nation that has long wrestled with the separation of church and state.

Where Davis’s answer was the First Amendment’s protection of religious freedom — and she served jail time to back it up — a majority of respondents don’t buy that argument when it comes to public officials issuing marriage licenses. That’s a shift since an AP-GfK survey in July, when Americans were about evenly split. Then, 49 percent said officials with religious objections should be exempt from issuing marriage licenses to same-sex couples and 47 percent said they should be required to issue them.

Now, just 41 percent favor an exemption and 56 percent think they should be required to issue the licenses.

That shift was especially stark among Republicans. A majority of them —58 percent — still favor religious exemptions for officials issuing marriage licenses, but that’s down 14 points since 72 percent said so in July.

The timing of the surveys is important, coming during rapid developments in the politics of gay rights and religious freedom.

Public opinion has favored same-sex marriage in recent years and some politicians — President Barack Obama, 2016 presidential contender Hillary Rodham Clinton and some members of Congress among them — have come around to that view. In June, the Supreme Court effectively legalized gay marriage nationwide.

The cultural change has influenced the governing bodies of some of the most conservative religions, including the Catholic Church under Pope Francis and the Mormon Church, which last week called for compromises between protecting religious liberties and prohibiting discrimination. Both institutions are trying to accommodate society’s shifting views while keeping a firm grip internally on their own doctrines against gay marriage and homosexual activity. And both churches steered clear of the appearance of backing Davis. The Vatican said the pope’s brief meeting with her in Washington should not be construed as a sign of support.

Mormon leader Dallin H. Oaks last week told a closed gathering of judges and clergy in Sacramento, California, that when conflicts between religion and law rise and are decided, citizens of a democracy must follow court rulings.

Davis, a Democrat, Apostolic Christian and clerk of Rowan County, Kentucky, became the face of religious Americans who bristle at government requirements that conflict with their beliefs, whether those mandates cover gay marriage, contraception or abortion referrals. On June 27 — the day after the high court ruling — Davis refused to issue same-sex marriage licenses. In September she spent five days in jail for defying a court order to issue the licenses. Affixing her name to the certificate, she wrote in a statement, “would violate my conscience.” After serving her jail sentence, Davis returned to work — but her name no longer appears on marriage licenses for gay couples.

Nick Hawks, a business consultant in Ararat, North Carolina, agrees with Davis.

“We’ve got to decide at some point who’s going to be protected first,” said the father of three boys, 50, who says he’s a Republican-leaning independent. “It doesn’t seem quite fair” to allow a minority such as gay people to “control the policy.”

More generally, the poll offers evidence that Americans remain slightly more likely to say that it’s more important for the government to protect religious liberties than the rights of gays and lesbians when the two come into conflict, 51 percent to 45 percent. But that, too, is a slight shift since July, when 56 percent said it’s more important to protect religious liberties.


The AP-GfK Poll of 1,027 adults was conducted online Oct. 15 to Oct. 19, 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 3.3 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.



Poll results:

AP-GfK Poll: Americans still feeling economic gloom

WASHINGTON (AP) — Americans are more likely than they were a year ago to have positive views of the nation’s economy, but they’re still feeling more pessimism than optimism, according to a new Associated Press-GfK poll conducted ahead of CNBC’s GOP primary debate on Wednesday.

The candidates will attempt to impress Republicans in particular, who the poll finds feel much gloomier about the economy than Democrats.

Here are some things to know about opinions on the economy from the latest AP-GfK poll:



A majority of Americans — 54 percent — say the nation’s economy is poor, the new poll shows. Just 45 percent call it good. Still, views of the economy are slightly rosier than they were over the summer, when a July AP-GfK poll found 41 percent of Americans described the economy as good, and more positive than they were a year ago, when just 38 percent said so.

Half of men, but just 4 in 10 women, describe the economy as good.

Americans are even less likely to see the nation heading in a positive direction overall. Just 36 percent think the country is heading in the right direction, while 63 percent think it’s headed in the wrong direction.

More than 8 in 10 Americans in the new poll described the economy as an extremely or very important issue, down slightly since July. Still, the economy rates higher in importance than any other issue in the poll.



The candidates will aim their messages at a Republican Party that has a particularly negative view of the economy.

While 65 percent of Democrats describe the economy as good, just 29 percent of Republicans say the same. Seven in 10 Republicans say the economy is poor, including more than 8 in 10 GOP supporters of the tea party. Eight-five percent of Republicans say the country is heading in the wrong direction.

Independents, too, are unhappy with the economy, with 33 percent seeing it as good and 62 percent poor.



Few Americans — just 17 percent — think the economy has improved over the past month, while 21 percent think it has gotten worse and the bulk — 60 percent — think it’s stayed about the same.

Most Americans don’t expect to see improvement in either the nation’s economy or their own financial situations in the next year, either.

Thirty-one percent say they expect the general economic situation to get better, 32 percent expect it to get worse, and 34 percent expect it to stay about the same. Likewise, 29 percent expect their household financial situation to get better, 25 percent expect it to get worse, and 44 percent expect it to stay the same.

Republicans are more likely than Democrats to say the economy has gotten worse in the last month, 31 percent to 13 percent. Democrats are more likely than Republicans to expect it to get better in the next year, 40 percent to 21 percent.



Whichever GOP candidate emerges victorious in next year’s presidential primaries will need to convince Americans that the party can do a better job than Democrats at handling economic issues.

Americans are slightly more likely to say they trust Democrats than Republicans more on handling the economy, 29 percent to 24 percent, the poll shows.

But neither party’s a clear winner on the issue — 15 percent say they trust both equally and 30 percent say they trust neither party.

Republicans are more likely than Democrats to say they trust neither party, 29 percent to 17 percent. A majority of independents — 55 percent — don’t trust either party.



Americans are slightly more likely to disapprove than approve of President Barack Obama’s handling of the economy, 52 percent to 46 percent, according to the new poll. But that’s an apparent rise in his approval rating on the issue since July, when just 42 percent said they approved.

Americans’ rating of Obama on the economy is nearly identical to how they feel about how he’s handling his job overall, with 46 percent approving and 52 percent disapproving.


The AP-GfK Poll of 1,027 adults was conducted online from Oct. 15 to 19. The sample was 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 3.3 percentage points.

Respondents were selected randomly using telephone or mail survey methods and interviewed online. People selected for KnowledgePanel without Internet access were provided it for free.



Poll results: