The Federal Reserve Payment Study supplement is out and here are some notable trends for credit card users.

1. Increased Use

Card payments continue to show robust growth increasing by 8.4% in 2018. The trend represents an acceleration in overall card payment growth compared to previous years. Consumers are utilizing rewards programs at record rates and the average consumer nationwide has 3.19 credit cards.

2. Remote Payment Growth

Online payments continued to grow as a share of credit card purchases. The number of online payment grew by 22.8% vs 7.2 for in-person payments. At the same, the value of online payments increased by 14.8%, compared to 4.4% for in-person payments. Many businesses and credit card processors are adapting to accept online payments and automated subscription payments to accommodate client demands.

3. Chip-authenticated Payments

Originally introduced in 2015, more than half of in-person card purchases in 2018 were with chip cards. This shows that many businesses have successfully updated to chip card readers within a short time window. Meanwhile, consumers continue to show frustration with the perceived additional time required for chip purchases as compared to stripe-read card transactions.

4. ACH Payments Accelerated

ACH payments through network automated clearinghouses accelerated growth, increasing 6.9% year-over-year. More businesses continue to abandon traditional payments in favor of ACH payments for payables.

5. Slow Decline of Checks

Checks continue to play a role in larger transaction, but showed a decline of 4.8% by number and 7.5% by value. The lion’s share of the decline was picked up by card and ACH payments.

Source: https://www.federalreserve.gov/paymentsystems/2018-December-The-Federal-Reserve-Payments-Study.htm

ABOUT US

Motus Financial, located in Sun Prairie, WI provides Point-of-Sale (POS) technology solutions and credit card processing services. Locally owned and operated Motus Financial provides a complete suite of POS technology services to assist merchants in processing payment from credit cards, debit cards, and checks.  Motus financial can also provide check processing as well as a customized gift card program for your business.

For more information, please contact us at 608-819-8666 or check out our website at www.motuscc.com and we look forward to assisting you.