Take On Payments, a blog sponsored by the Retail Payments Risk Forum of the Federal Reserve Bank of Atlanta, is intended to foster dialogue on emerging risks in retail payment systems and enhance collaborative efforts to improve risk detection and mitigation. We encourage your active participation in Take on Payments and look forward to collaborating with you.
Federal Reserve Web Sites
Other Bank Regulatory Sites
August 14, 2017
Extra! Extra! Triennial Payments Data Available in Excel!
In countless old black-and-white movies, street newspaper vendors would shout out the latest sensational news from hot-off-the-press special editions. The Fed is no different in that we want to shout out that it is no longer necessary to mine the PDF-based Federal Reserve Payments Study report to extract the study's data. For the first time, we are offering our entire aggregated data set of estimated noncash payments in an Excel file. The report accompanying the data is here.
The data set is very rich and covers the following categories:
Accounts and cards
Private-label credit processors
|Checks||Person-to-person and money transfer|
|ACH||Online bill pay|
|Non-prepaid debit||Walk-in bill pay|
|General-purpose prepaid||Private-label ACH debit|
|Private-label prepaid issuers & processors||Online payment authentication|
|General-purpose credit||Mobile wallet|
|Private-label credit merchant issuers|
Here is another table that is just one extract from the non-prepaid debit card portion of the extensive payments data available.
To get a taste of what this data can teach us, let's look closer at the cumulative volume distribution by payment dollar value threshold for non-prepaid debit cards (the data are shown above) along with general-purpose credit cards. The number and value of both types of payments grew substantially from 2012 to 2015, the last two survey periods. The chart compares these distributions, showing more vividly how this growth affected the relative proportions of payments of different dollar values.
For example, debit card payments below $25 accounted for 59.1 percent of all payments in 2012 versus 61.8 percent in 2015—evidence that debit card purchases are migrating to lower ticket amounts. The trend is even more dramatic over the same time span for general-purpose credit cards.
Because this is a distribution, increases in the relative number of small-value payments must be offset by decreases in the relative number of large-value payments. Unfortunately, our previous survey capped the payment threshold at $50 in 2012. Otherwise, we would see the dashed 2012 lines crossing over the solid 2015 lines at some payment value threshold above $50. In brief, the results suggest cash payments are continuing to migrate to debit cards, while credit cards may be garnering some share at the expense of both cash and debit cards.
The challenge is on for you data analysts out there. Please share your findings.
By Steven Cordray, payments risk expert in the Retail Payments Risk Forum at the Atlanta Fed
- Heading toward A New Era of POS Portability?
- Is My Identity Still Mine?
- Evidence of the Digital Age
- Cash Discount Programs: The Flip Side of Surcharging?
- Paying with PlasticMetal
- Merchant Surcharging: Winners and Losers
- Fintech for Financial Wellness
- Advice to Fintechs: Focus on Privacy and Security from Day 1
- Convenience Always Wins, In One Form or Another
- Mobile Banking and Payments' Weakest Link: Me
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- account takeovers
- ATM fraud
- bank supervision
- banks and banking
- card networks
- check fraud
- consumer fraud
- consumer protection
- cross-border wires
- data security
- debit cards
- emerging payments
- financial services
- identity theft
- law enforcement
- mobile banking
- mobile money transfer
- mobile network operator (MNO)
- mobile payments
- money laundering
- money services business (MSB)
- online banking fraud
- payments risk
- payments study
- payments systems
- phone fraud
- remotely created checks
- risk management
- Section 1073
- social networks
- third-party service provider
- trusted service manager
- Unfair and Deceptive Acts and Practices (UDAP)
- wire transfer fraud
- workplace fraud