Endnotes
1. The fraction of U.S. households using ATM cards grew from 35% in 1995 to 57% in 2001 (Bell, Hogarth, and Robbins 2009). 2. Different surveys yield generally comparable results but inevitably different answers. For instance, the Federal Reserve’s 2007 Survey of Consumer Finances (SCF) reports use of credit cards and debit cards, respectively, at 70% and 71% of households (Bell, Hogarth, and Robbins 2009). In contrast, the Federal Reserve Bank of Boston’s 2008 Survey of Consumer Payment Choice reports use of credit cards and debit cards, respectively, at 78% and 80% of consumers (Foster et al. 2010). Different definitions and methodologies prevent straightforward combining of results across different surveys and different years. In Figure 1, we focus on the SCF results since they provide long-term series computed using relatively stable methodologies. 3. Data on the number of transactions paid with cash over time are essentially nonexistent, but various scholars report growing indirect evidence of reduced use of cash (Humphrey 2004; Gerdes and Walton 2005, 181). 4. Borzekowski, Kiser, and Ahmed (2006, 2) reported that ATM withdrawals have also been slowing down in recent years. 5. The dollar volume of credit card transactions ($1.76 trillion [T]) was still larger than that for debit card transactions ($1.63T) in 2009. However, the dollar volume of credit card transactions shrunk by 9% while that for debit cards grew by 8% (HSN Consultants 2010). 6. Borzekowski, Kiser, and Ahmed (2006) studied the use of debit cards, employing one of the first detailed surveys that asked multiple questions on debit cards. 7. While the CFM was launched in 2005, it added a detailed set of questions on payment methods in 2007. 8. While many consumers likely engage in at most only one transaction per month for some purchase categories (housing, taxes, insurance, etc.), other categories likely involve several purchases per month (utilities, groceries, dining, etc.). 9. We found the highest fractions of casual users among the more recent, sophisticated payment methods. While 26.2% of respondents are intensive users of automated withdrawals (i.e., they identified what purchase category they had used the payment method for), another 32.7% are casual users (i.e., they did not identify a purchase category for the payment method). For e-bill payments, 22.9% are intensive users and 24.3% are casual 21