Rockville (MD), May 29, 2012 -- The twin pillars of retail banking revenue--debit interchange and overdraft fees--are under assault, according to Debit Cards in the U.S., a just-released report from market research firm Packaged Facts.
As an integral aspect of consumer checking accounts, debit card transactions drive interchange revenue and are linked to overdraft fee revenue. Packaged Facts estimates that debit card payment volume will rise 10.7% in 2012 to $1.99 trillion, on the strength of 51.8 billion transactions. This translates to approximately $38.50 per transaction.
On the heels of new check overdraft protection rules, debit interchange has been capped, and electronic debit transactions must now be processed over at least two unaffiliated payment networks. These changes are reshaping the debit card competitive landscape and driving sweeping changes in consumer banking relations, checking account and fee structures, and debit payment network economics.
According to David Sprinkle, the publisher of Packaged Facts, the bottom line is that the fee structures banks implement will determine not only the strength of debit transaction growth going forward, but also related growth in credit cards and prepaid cards--and could even spur a renaissance in cash and check.
Packaged Facts predicts that the banking industry will increasingly steer selected customers to credit cards, prepaid cards, and alternative payment options that provide greater profit potential.
For further information, please visit: www.marketresearch.com and https://www.packagedfacts.com/Debit-Cards-Edition-6385017/.
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