Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Transactions to exceed 100 billion for first time
LAKE BLUFF, Ill. (10/14/09)--Credit unions will have to plan for members’ greater electronic payment use because the number of checks and electronic transactions for debit cards, credit cards and automatic payments is expected to exceed 100 billion by the end of the year--the first time in U.S. history, according to an Illinois financial industry research firm. “[Based on the data], we believe there will be implications to the bottom line of financial institutions in pricing, fee structure and service delivery,” said Mike Moebs, CEO of Moebs Services, a research firm in Lake Bluff, Ill. The volume represents all transactions from consumers and businesses. It is based on research and projections conducted by Moebs Services, which used Federal Reserve data ranging from 1979 to 2006. Transactions in 2009 are expected to break down as follows:
* Debit card transactions, 33%; * Paper checks, 24%; * Credit card transactions, 23%; and * Automatic payments, 20%.
One interesting item about the projected 100 billion transactions is that “they do not represent an increase in U.S. consumer spending, which began declining in 2008 and is still not back on track as we approach year-end,” Moebs said. “This research indicates that consumers are doing significantly more transactions for significantly fewer dollars than in the past. This may be due to easy electronic payment methods replacing cash,” he added. The changes in payment trends mean that credit unions and other financial institutions will see reduced overdraft revenue from consumers using fewer paper checks. Paper check volume has dropped to 25% of transactions from 85%, Moebs said. Financial institutions also will have to secure their online electronic payment systems to prevent fraud, and ensure that their electronic communications can manage the increasing volume of transactions without errors, Moebs added.


RSS





print
News Now LiveWire
At @FTC request, court halts operations of an alleged debt-relief scammer calling itself “FTC Credit Solutions.” http://t.co/qMsDBmKExH
24 minutes ago
.@daytondailynews : The secret is out about #creditunions http://t.co/Aqu3pFTROV @DayAirCU @CODECreditUnion
36 minutes ago
.@CUNA's @Nussle on @SenatorReid :(2of2)On behalf of more than 102M #CU members,I thank him 4 his leadership over the yrs/wish him the best.
2 hours ago
.@CUNA CEO Nussle on Sen. Reid’s decision not 2 seek re-election (1of2): Sen. Reid has a long history of #CU support throughout his career.
2 hours ago
#Jobless claims duck under 300K for 3rd straight week #Market #Economy http://t.co/jOsZWf9HNJ
2 hours ago