CU Debit Cards Trends Revealed in Co-Op Study

A study conducted by CO-OP Financial Services and MasterCard provides insights into credit union debit card services and trends among consumers.

The 2018 U.S. Credit Union Debit Card Benchmark Study noted that debit cards are now the most popular form of payment in the U.S., being used more often than cash and credit cards. It also showed that Americans are most likely to use their debit card to withdraw cash from an ATM or pay in store with a PIN.

When it comes to fraud, equal amounts of credit union respondents said debit card fraud losses were increasing with card not present (CNP) fraud the most common and costliest. Nearly 40% said CNP fraud happened most often and had the largest dollar volume, followed by card compromise and skimming. Credit unions said they expect CNP fraud to continue to grow.

Additional data included in the report revealed that consumers, who don't use their debit card for situations like online shopping, believe that "credit cards are safer to use online" (44%) or they "fear their checking account will be compromised" (40%).

When it comes to mobile banking, 80% of credit union respondents said balance and transaction capabilities were "extremely important," followed by transferring funds (73%) and making payments to loan products (68%). Three-fifths of respondents reported that their credit union does not offer card controls via the mobile app, with almost half citing cost as the reason.

The survey received responses from more than 200 credit union executives, debit card product managers and other employees with responsibilities related to debit card portfolios and included data from other sources.