PULSE study: Surcharge-free access on the rise
HOUSTON (8/19/08)--Surcharge-free ATM access is becoming more popular among debit card issuers, according to the PULSE 2008 Debit Issuer Study.
Sixty-two financial institutions, including credit unions, participated in the study. The institutions issue a combined 74 million debit cards, or 28% of all U.S. debit cards.
About 56% of survey respondents said they participate in a surcharge-free ATM network. Also, 84% of credit union respondents offer surcharge-free service to their members for certain "off-us" transactions, or transactions conducted at ATMs owned by other organizations.
The study also indicated:
- ATM transaction activity is increasingly "on-us," which means that cardholders are using issuers' ATMs, limiting surcharges;
- Active debit cardholders conduct 3.4 transactions per month; and
- Heavy ATM users are also heavy debit card users, implying that cardholders do not use the "cash back" option often.
About 51% of respondents said they offer rewards programs, compared with 37% in 2006. Of those, 42% offer debit rewards programs, compared with 16% in 2006. Points-based rewards are the most common program type.
Prepaid cards are gaining popularity, the survey said. About 61% of respondents said they offer the cards, with 16% looking to offer the cards in the future.
The survey also addressed growth challenges, such as:
- Contactless cards--10% of respondents offer the cards, but only 24% of their cardholders use the technology. Key barriers to contactless adoption include merchant acceptance, unfavorable cost/benefit ratios and low demand;
- Mobile banking--15% of respondents support mobile banking, while 28% said they will offer it soon; and
- Mobile payments--56% of issuers said they are exploring the possibility of implementing this feature.
PULSE, an ATM/debit network, serves more than 4,500 financial institutions, including credit unions, nationwide.
More CU/System
News Now LiveWire
- John Bell, an employee of NC Community FCU, has announced his candidacy for the NC House of Representatives. - 2 days ago
- The Pennsylvania Credit Union Foundation announced Friday it has--since its inception--topped the $2 million milestone for awarding grants. - 2 days ago
- CFPB recommends 5 ways taxpayers can keep more of their tax refunds: http://t.co/wUxK7CLd - 2 days ago
- CUNA CEO Bill Cheney promoted consumer access to CUs during an appearance on the Willis Report on Fox Business News Wednesday. - 3 days ago
- NCUA will consider a merger request, and supervisory activities, at its Feb. 16 closed bd mtng. NCUA will not hold an open mtng this month - 3 days ago
- See all our Tweets and sign up; News Now LiveWire on Twitter
