While recent legislative actions by the federal government have largely been deemed helpful for many Americans, allowing them to avoid fees, get out of debt and gain access to new borrowing, many consumers are still skeptical of the recent industry-wide shake-ups.
In a recent study by Javelin Strategy and Research, the payment industry analyst found roughly 66 percent of consumers did not expect to see any reductions in merchant prices or payment processing costs due to the regulations.
“[Financial Institutions] will need to monitor costs closely and carefully consider the impacts of implementing new services and fees,” said Mary Monahan, managing partner and research director of Javelin Strategy and Research. “Since consumer perception is a critical factor in this new reality, financial institutions will need to rethink the way they approach relationships and consider how to present the value of their services to their customers.”
In addition, consumers were just as skeptical of new fees imposed by financial providers to counteract the regulations. For example, around 60 percent of consumers said they would be willing to switch banks to avoid debit card fees and other added charges.