Infographic: Debit, credit cards still killing off checks
Data whiz and visual storyteller
Every three years, the Federal Reserve calculates how many of our country’s noncash transactions are taken care of with checks, cards and electronic withdrawals. And every three years, the share of checks withers.
The Fed’s 2015 report, released Dec. 22, 2016, shows that checks now account for only 12 percent of U.S. noncash transactions. That’s compared to 16 percent three years earlier, and almost a quarter (23 percent) in 2009.
Thirty-five years ago, a whopping 86 percent of noncash payments were made by check, with credit cards making up almost all of the remainder. But by 2000, debit cards had stormed on the scene and gained a foothold, while credit cards moved above a 20 percent share.
Credit cards have held steady at 22 to 23 percent of noncash payments every year since 2000, except for the post-recession year of 2009, when they slid to 19 percent of transactions. But debit cards have soared in the mix, climbing rapidly to become the most frequent noncash payment by 2009. Today, they command a 41 percent share of the pie.
In addition to cards and checks, automated transfers by ACH and prepaid debit cards together accounted for about a quarter (23 percent) of 2015’s noncash transactions.
The 2016 Federal Reserve Payments Study combines data gathered from three individual surveys commissioned by the Fed.
To use the graphic on your site, use the following code:
- Millennials most candid when discussing money with future spouses – A new survey shows millennial couples consistently reporting greater transparency and more candid discussion with their future spouses on a number of financial fronts than older adults ...
- Older millennials prefer paying with debit, unlike other groups under 55 – A recent survey shows older millennials stand alone among the under-55 crowd in preferring to pay with debit over credit. However, Gen Z is evenly split between the two ...
- Retailers say ‘Less signing, more PINs’ for credit card purchases – No-signature retailers may be more common than signature retailers within the next year, according to a new study ...