Consumer Substitution in the Wake of Durbin

(Todd Zywicki)

According to a Bloomberg story:

About 30 percent of U.S. consumers said they'd leave their banks over fees for using their debit cards, according to a survey by the Research Intelligence Group.

About 43 percent said they'd switch to paying with cash or credit cards if their bank implemented charges; 13 percent said they'd pay the fee if it was "reasonable," according to the survey released last week by the consulting and market-strategy firm.

According to the survey, lower-income consumers, who have the fewest alternatives for escaping the new fees, report that they will be the most likely to persist in paying bank fees:

Low– to middle-income consumers are more likely to pay the fees, according to the survey. About 22 percent of those consumers, defined as those households earning $35,000 to $49,000 a year, would be willing to pay the fee, compared with 14 percent of consumers whose households earn $100,000 or more.

"Less-affluent populations often feel like they have fewer options at their disposal," Kaplan-Sherman said.