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: Trump supporters unfazed by reversal on self-funding

By JULIE BYKOWICZ and EMILY SWANSON

WESTFIELD, Ind. (AP) — Donald Trump’s voters adored him for mostly paying his own way in the first half of the presidential campaign. Yet those same people are shrugging their shoulders now that he’s raising money just like the rivals he once disparaged as the “puppets” of big donors.

A new Associated Press-GfK poll found that 63 percent of Trump supporters say they’re at least somewhat more likely to back a self-funded candidate, just as he once was. However, just 13 percent consider it a problem that Trump changed his mind — and nearly all those think it’s only a minor one.

How can people care so strongly about a candidate’s original stance and then not care at all when he changes his mind?

At a Trump rally this week near Indianapolis, some of his most ardent supporters explained their thinking. Many said it wouldn’t be fair for Trump, a billionaire businessman, to have to spend his own money against Hillary Clinton. The presumptive Democratic nominee and her allies aim to raise $1 billion for the general election.

“It was inspiring to see someone spend their own money rather than relying on lobbyists,” said 18-year-old Maxwell Nugent, who will be casting his first presidential vote for Trump this November. “It makes it more profound for him to be asking all the people who supported him to be giving money to the campaign now.”

Nugent, who wore a black T-shirt that reads: “Hillary’s Lies Matter,” said he likes that Trump “started from the bottom, with no donors.”

So far, Trump has put about $50 million of his own money into his campaign, mostly through personal loans which he says he will not seek to recoup. But he assembled a fundraising operation two months ago and has raised more than $51 million for his campaign and Republican Party allies.

Others who attended the Indiana rally said they have some concerns about Trump raising money — but also have faith that he won’t bend his policies to appease donors.

“A big thing with me is that since he is a billionaire, he doesn’t need to be bought,” said Diane Martinez, who lives in Westfield, Indiana, and leads a group called Save Our Veterans that supports Trump.

Trump has lamented the influence that super-donors such as Charles and David Koch and Sheldon Adelson hold over Republican politicians, naming those three specifically.

Yet he’s now developing a relationship with Adelson, a billionaire Las Vegas gaming executive, that could unleash streams of money to help him win the election. The Koch brothers have no plans to back Trump.

Americans have a negative view of the amount of money in politics. An AP-NORC poll conducted in November of 2015 found that 8 in 10 Americans, Republicans and Democrats alike, think campaign contributions influence the decisions that elected officials make.

Trump supporters are among those who see an issue with the way campaign funding works. In the AP-GfK poll, 51 percent of Trump supporters call the way presidential candidates raise money for their campaigns very or extremely important to them, similar to the 46 percent of all Americans who say that.

“We need absolute reform,” said Victor Wakley, another Save Our Veterans member at the Indiana rally for Trump. “I loved that he was paying his own way, and I do have some concerns now that he’s not.”

Democrat Bernie Sanders, who solicited only small donations online and held no traditional fundraisers, made campaign finance reform a pillar of his presidential campaign. Clinton also has promised to press for an end to unlimited money that flows into campaigns through super political action committees, although she is making full use of those groups in her 2016 bid.

Trump has called super PACs “corrupt” but offered no policy proposals about campaign finance. He’s also stopped talking about the corrosive effect of donor money since he began raising it.

In an AP interview this spring, Trump said he is raising money only to help the Republican Party, and he has repeatedly said it would be easier for him to just write a big check to his own campaign. He also stresses that his campaign fundraising is coming from small donors, the way Sanders’ fundraising was.

None of those statements is entirely true.

Trump’s fundraising deal with the party includes a provision that the first $2,700 of any donation go to his campaign. The rest of it — up to about $500,000 per donor — is divided among the national party and some state Republican groups.

Online solicitations accounted for less than half of the money Trump raised in late May and June, and it’s not clear how much of it was from small donors. Fundraising reports to federal regulators are due Wednesday night.

On Trump’s self-funding reversal, 16 percent of all Americans polled by AP-GfK considered it a major problem and 21 percent a minor problem.

Among Clinton supporters, 26 percent say they’re at least somewhat more likely to support a candidate who’s funding his or her own campaign, but more than half say they consider Trump’s reversal to be a problem, including 27 percent who say they think it’s a major problem.

The Trump supporters say it’s no surprise Democrats are trying to emphasize Trump’s switch from self-funding to traditional funding.

“There are a couple of ways to look at it,” said Jerry Loza, a Trump supporter at the Indiana rally. “You could say it’s hypocrisy. You could also say it’s a different game now.”

The AP-GfK Poll of 1,009 adults was conducted online July 7-11, 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 have access to the Internet were provided access for free.

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Keep track on how much Clinton and Trump are spending on television advertising, and where they’re spending it, via AP’s interactive ad tracker. http://elections.ap.org/content/ad-spending

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Online:

Poll results: http://ap-gfkpoll.com


AP-GfK Poll: Voters split over how to secure US from illegal immigration
By EMILY SWANSON and VIVIAN SALAMA

WASHINGTON (AP) — Most Americans reject Donald Trump’s proposal to build a wall along the U.S. border with Mexico and his support for deporting those in the country illegally. But they’re divided on the presumptive Republican nominee’s proposed temporary ban on the entry of Muslims from other countries, a new survey finds.

The poll shows Trump’s shifting rhetoric on that ban might win some Americans over.

When it comes to Trump’s proposal to build a wall along the Mexican border, about 6 in 10 Americans oppose the idea while 4 in 10 are for it, the new Associated Press-GfK poll indicated.

Similarly, 6 in 10 Americans favor providing a way for immigrants who are in the country illegally to become U.S. citizens, while about 4 in 10 are opposed.
Seventy-six percent of Democrats, along with 44 percent of Republicans, favor a path to citizenship for immigrants in the country illegally. Among Trump’s supporters, just 38 percent are in favor of a path to citizenship. Sixty-seven percent of Republicans and just 21 percent of Democrats favor a border wall. Three-quarters of Trump’s supporters favor that proposal.

Trump’s likely rival, Democrat Hillary Clinton, has cast his calls for the border wall and temporary foreign Muslims ban as dangerous.

Trump supporter Marile Womack, 79, of Debary, Florida, adamantly favors the border wall. No one else “had the guts to do it,” she said. But the daughter of Austrian immigrants isn’t opposed to immigration from any country so long as it’s done legally.

“I don’t favor banning immigrants, but I am for investigating them before they come,” she said.

In contrast, Mark Wecker, a car salesman from Redding, California, called a border wall stupid, because “it’s a lot of money and it’s not going to keep them out if they want to get in.”

Three-quarters of Latinos, two-thirds of African-Americans and more than half of whites favor providing a path to citizenship. Forty-eight percent of whites, 26 percent of blacks and just 16 percent of Latinos favor a border wall.

Daniella Gil, a stay-at-home-mom from Cornelius, Oregon, who is the daughter of Mexican immigrants, said, “We should be focusing on the violence coming from Syria as opposed to Hispanics jumping the border.”

She said she supports immigration from any country so long as it’s done legally.

Americans are slightly more likely to oppose than favor a temporary ban on Muslims who are not U.S. citizens from entering the United States, by a 52 percent to 45 percent margin that has been strikingly consistent in AP-GfK polls conducted this year.

Sixty-nine percent of Republicans say they favor the temporary ban on Muslim immigration, while 68 percent of Democrats are opposed. Half of whites and just a third of non-whites say they favor the ban. Seventy-six percent of Trump supporters are in favor.

On a trip to Scotland last month, Trump shifted his rhetoric, saying he would instead “want terrorists out” of the U.S., and to do so, he would limit people’s entry from “specific terrorist countries and we know who those terrorist countries are.”

The poll indicates that rhetorical shift could win support. Among those asked more broadly about a temporary ban on immigrants from areas of the world where there is a history of terrorism against the U.S. or its allies, 63 percent are in favor and 34 percent opposed. Ninety-four percent of Trump supporters say they favor this proposal, as do 45 percent of Clinton supporters.

“That’s a necessity for creating stability,” said Ryan Williams, 40, a health care provider from Jacksonville, North Carolina.

Most Americans — 53 percent — think the United States is currently letting in too many refugees from Syria, engulfed in civil war since 2011 and the Islamic State militant group’s de facto center. President Barack Obama has pledged to admit some 10,000 Syrian refugees this year.

Another 33 percent think the current level is about right, while just 11 percent want to let in more. About 4 in 10 think there’s a very or somewhat high risk of refugees committing acts of religious or political violence in the United States, 34 percent think the risk moderate, and 24 percent consider it very or somewhat low.

Seventy-six percent of Republicans think the U.S. should allow fewer refugees. Among Democrats, 43 percent think the current level is about right, 38 percent think the U.S. should allow fewer, and 18 percent want to allow more.

Said Gil, the stay-at-home mom from Oregon, “Some of those people are innocent kids.”

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The AP-GfK Poll of 1,009 adults was conducted online July 7-11, 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 have access to the Internet were provided access for free.

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Online:

Poll results: http://ap-gfkpoll.com

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Follow Vivian Salama and Emily Swanson on Twitter at: http://twitter.com/vmsalama and http://twitter.com/EL_Swan