Related Resources - consumer credit and payments: studies, reports, articles, webinars

Studies & Surveys

Survey of Consumer Finances

The Survey of Consumer Finances (SCF) is a triennial survey of the balance sheet, pension, income, and other demographic characteristics of U.S. families. The survey also gathers information on the use of financial institutions.
Federal Reserve System Board of Governors (Various Years)

2007, 2004, and 2001 Federal Reserve Payments Studies

The Federal Reserve Payments Studies are part of an ongoing effort by the Federal Reserve System to measure and analyze trends in noncash payments in the United States. The 2007 study consists of three individual studies: the Check Sample Study (2007 CS study), the Depository Institutions Payments Study (2007 DI study), and the Electronic Payments Study (2007 EP study). The 2004 and 2001 studies are also available below.

2007 Federal Reserve Payments Study – Summary Report

2004 Federal Reserve Payments Study – Summary Report

2001 Retail Payments Research Project

Credit Card Disclosures, Solicitations, and Privacy Notices: Survey Results of Consumer Knowledge and Behavior

Presents the results of surveys undertaken to assess consumers ’ knowledge of, familiarity with, and attitudes about credit card disclosures, credit card solicitations, and privacy notices received from their financial institutions.
Federal Reserve System Board of Governors (2006)

Trends in the Use of Payment Instruments in the United States

This article analyzes the results of two payments surveys conducted in 2004, one of depository institutions (the 2004 depository institution survey) and one of electronic payments networks, processors, and credit card issuers (the 2004 electronic payment survey). It also draws on the results of two similar surveys conducted in 2001.
Federal Reserve System Board of Governors (2005)

U.S. Consumers and Electronic Banking, 1995-2003

This article draws on data from two nationwide surveys to look at consumers' use of e-banking technologies, particularly as it relates to consumer demographic characteristics and perceptions, and the relationship between these factors and the characteristics of selected e-banking products and services. The article examines changes in consumers' use of e-banking technologies between 1995 and 2003, a period of substantial change and growth in the electronic financial services marketplace, and shifts in perceptions in recent years. It concludes with a discussion of the implications of trends in the use of e-banking for consumer educators.
Federal Reserve System Board of Governors (2004)

The Future of Retail Electronic Payments Systems: Industry Interviews and Analysis

To understand the implications of developments in electronic payments and to gather more information about barriers to payments innovation, the Federal Reserve's Payments System Development Committee asked Federal Reserve staff to hold discussions with a broad range of parties interested in the evolution of the payments system. Special attention was given to issues involving the clearing and settlement of retail electronic payments. Part 1 of the following report provides an informative overview of the diverse opinions expressed in the discussions. Part 2 summarizes and provides further information, where possible, on specific comments and recommendations made by those interviewed. These comments and recommendations are directed at both the public and private sectors.
Federal Reserve System Board of Governors (2002)

Reports to the Congress

Report to the Congress on Credit Scoring and Its Effects on the Availability and Affordability of Credit

Section 215 of the Fair and Accurate Credit Transactions Act of 2003 (Fact Act) directs the Federal Reserve Board and the Federal Trade Commission (FTC) to study how credit scoring has affected the availability and affordability of credit and insurance, to determine the relationship between credit scores and actual credit losses and insurance claims, and to determine how these relationships vary for the population groups protected under the Equal Credit Opportunity Act (ECOA). In addition, section 215 directs the Board and the FTC to study the extent to which the consideration of certain factors included in credit-scoring and insurance-scoring models could have a negative or differential effect on populations protected under ECOA and the extent to which alternative factors could be used in credit scoring to achieve comparable results with less negative effect on protected populations. In preparing the study, the Federal Reserve took the lead in assessing the effects of credit scoring on credit markets, the subject of the present document; the FTC took the lead in the area of insurance and has issued a separate report on the topic.
Federal Reserve System Board of Governors (2007)

Report to the Congress on the Disclosure of Point-of-Sale Debit Fees

This report presents findings by the Federal Reserve Board on the disclosure of fees that a depository institution imposes when a customer chooses to secure a point-of-sale (POS) debit transaction by providing a personal identification number (PIN). The economic importance of debit card transactions has grown steadily in recent years. In 2004, consumers in the United States will conduct an estimated 18.6 billion debit card transactions, an amount that represents approximately 53 percent of all card-based purchase transactions. Consumers will secure more than one-third of these debit transactions with a PIN and the remainder with a signature. Recently, some depository institutions have instituted a fee that applies when a consumer conducts a PIN debit transaction. Some members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs are concerned that consumers may be unaware of the existence or the source of these fees. To address this concern, committee members requested that the Federal Reserve Board conduct this study.
Federal Reserve System Board of Governors (2004)

The Profitability of Credit Card Operations of Depository Institutions

Section 8 of the Fair Credit and Charge Card Disclosure Act of 1988 directs the Federal Reserve Board to transmit annually to the Congress a report about the profitability of credit card operations of depository institutions. This is the 12th report. The analysis here is based to a great extent on information from the Consolidated Reports of Condition and Income (Call Report) and two Federal Reserve surveys, the Quarterly Report of Credit Card Interest Rates and the Survey of Terms of Credit Cards Plans.
Federal Reserve System Board of Governors (2002)

Papers & Articles

Recent Developments in the Credit Card Market and the Financial Obligations Ratio

Over the past fifteen years, U.S. households in the aggregate have devoted an increasing share of their after tax income to the payment of financial obligations. Much of the increase is attributable to a rise in the level of credit card debt, which has raised the share of households' aggregate after tax income that is devoted to credit card payments. This article argues that three important developments in the credit card market over the period account for most of the rise in credit card payments relative to income and played a strong role in the rise of the total financial obligations ratio (FOR).
Federal Reserve System Board of Governors (2005)

Credit Report Accuracy and Access to Credit

This paper examines the possible effects that data limitations have on consumers by estimating the changes in consumers' credit scores that would show up in their credit records. It also investigates whether different patterns emerge when individuals in the sample are grouped by strength and depth of credit history and selected demographic characteristics. Such segmentation allows the determination of whether the effects of data limitations differ for various subgroups of the population.
Federal Reserve System Board of Governors (2004)

A Guide to the ATM and Debit Card Industry

The ATM and debit card industry is undergoing significant change. Some of the most dramatic changes include the sharp growth in point-of-sale debit card transactions, the intense competition between online and offline debit, the heavy consolidation of regional EFT networks and third-party service providers, the growing importance of nonbank and third-party processor ownership of networks, and new pricing structures and strategies. This paper provides a guide to the current structure of the ATM and debit card industry. It also highlights some key economic and public policy issues. Among the issues addressed are market concentration, vertical integration and economies of scope, pricing, access, and risk.
Federal Reserve Bank of Kansas City, Payments System Research (2003; updated 2006)

Nonbanks in the Payments System

Nonbanks have always been a key component of the nation’s payments system. In recent years, however, nonbanks have become even more prominent. This heightened visibility raises several questions. What payments activities are nonbanks engaged in? What roles do nonbanks play in specific payments types? What types of risk are potentially associated with nonbank participation? This paper begins to address these questions. Preliminary findings include: (1) Nonbanks are involved in a myriad of activities and roles, both in traditional and emerging payments types; (2) Nonbank business relationships with banks and other participants in the payments systems are often highly complex and interrelated; (3) Nonbanks are rarely directly involved in settlement activities and, hence, appear to be associated with limited settlement and systemic risk; (4) Both nonbanks and banks appear to be increasingly susceptible to operational risk factors.
Federal Reserve Bank of Kansas City, Payments System Research (2003)

An Overview of Consumer Data and Credit Reporting

For some time, the Board of Governors of the Federal Reserve System has sought to obtain more detailed and timely information on the debt status, loan payment behavior, and overall credit quality of U.S. consumers. For decades, information of this type has been gathered by credit reporting companies primarily to assist creditors in evaluating the credit quality of current and prospective customers. To evaluate the potential usefulness of these data, the Federal Reserve Board engaged one of the three national consumer reporting companies to supply the credit records, without personal identifying information, of a nationally representative sample of individuals. This article describes the way the credit reporting companies compile and report their data and gives background on the regulatory structure governing these activities. This description is followed by a detailed look at the information collected in credit reports. Key aspects of the data that may be incomplete, duplicative, or ambiguous as they apply to credit evaluation are highlighted in the analysis. The article concludes with a discussion of steps that might be taken to address some of the issues identified.
Federal Reserve System Board of Governors (2003)

The Use of Checks and Other Noncash Payment Instruments in the United States

Statistical estimates indicate that the use of checks in the United States has been declining since the mid-1990s, even as the population and level of economic activity have been increasing. In contrast, the use of electronic payments has been growing at high and accelerating rates. Nonetheless, the paper check remains the predominant means of making retail payments and will likely continue to play a significant role in the U.S. payment system for the foreseeable future. The number and value of checks paid vary across depository institutions according to type, size, and location, in part as a result of differences in the use of checks and electronic payments by households, businesses, and governments. Overall, household's share of total checks written has increased relative to that of businesses and governments.
Federal Reserve System Board of Governors (2002)

Guidance & Regulation

Board Approves Proposed Rule Amending Credit Card Provisions of Regulation Z (Truth in Lending)

The Federal Reserve Board proposed rules amending Regulation Z (Truth in Lending) to protect consumers who use credit cards from a number of potentially costly practices.
Federal Reserve System Board of Governors (2009)

Board Issues Interim Final Rule Amending Credit Card Provisions of Regulation Z (Truth in Lending)

The Federal Reserve Board approved an interim final rule amending Regulation Z (Truth in Lending) to require creditors to increase the amount of notice consumers receive before the rate on a credit card account is increased or a significant change is made to the account's terms. The amendments also allow consumers to reject such increases and changes by informing the creditor before the increase or change goes into effect.
Federal Reserve System Board of Governors (2009)

Agencies Issue Frequently Asked Questions on Identity Theft Rules

Six federal agencies issued a set of frequently asked questions (FAQs) today to help financial institutions, creditors, users of consumer reports, and issuers of credit cards and debit cards comply with federal regulations on identity theft and discrepancies in changes of address.
Federal Reserve System Board of Governors (2009)

Regulation E (Electronic Fund Transfers)

Establishes the rights, liabilities, and responsibilities of parties in electronic funds transfers and protects consumers when they use such systems.

Regulation Z (Truth in Lending)

Prescribes uniform methods for computing the cost of credit, for disclosing credit terms, and for resolving errors on certain types of credit accounts.

Regulation AA (Unfair or Deceptive Acts or Practices)

Establishes consumer complaint procedures and defines unfair or deceptive practices in extending credit to consumers.

Regulation DD (Truth in Savings)

Requires depository institutions to provide disclosures to enable consumers to make meaningful comparisons of deposit accounts.

FFIEC Agencies Issue Guidance on Credit Card Account Management and Loss Allowance Practices

Under the auspices of the Federal Financial Institutions Examination Council, the Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision have issued guidance governing account management and loss allowance practices for credit card lending.
Federal Reserve System Board of Governors (2003)

Authentication in an Internet Banking Environment

This updated guidance replaces the 2001 Guidance and specifically addresses why financial institutions regulated by the agencies should conduct risk-based assessments, evaluate customer awareness programs, and develop security measures to reliably authenticate customers remotely accessing their Internet-based financial services.

Web Seminars & Videos

Lessons from a Storm

This video demonstrates how having a bank account proved to be a big advantage to Hurricane Katrina victims who were trying to get back on their feet and re-establish a firm financial footing. Read the press release , watch the video in English or Spanish, or order the video as a dual-language DVD.

Credit Cards: Past, Present, Future

On March 8, 2009, as part of National Consumer Protection Week, the Federal Reserve Board's Division of Consumer and Community Affairs sponsored a webinar on changes in the credit card market; current trends in consumer research on credit cards, including consumer testing; new credit card regulations that will take effect in 2010; and consumer tools and information available from the Federal Reserve. The webinar included a question and answer segment.

Please note: This is a recorded event; the real-time polling feature of this webinar is no longer active.

View presentation (49:41, requires Adobe Flash Player)
View presentation slides (1.77 MB, 32 pages)

All Resources

Resources listed under this tab are ordered alphabetically by title.

2007, 2004, and 2001 Federal Reserve Payments Studies

The Federal Reserve Payments Studies are part of an ongoing effort by the Federal Reserve System to measure and analyze trends in noncash payments in the United States. The 2007 study consists of three individual studies: the Check Sample Study (2007 CS study), the Depository Institutions Payments Study (2007 DI study), and the Electronic Payments Study (2007 EP study). The 2004 and 2001 studies are also available below.

2007 Federal Reserve Payments Study – Summary Report

2004 Federal Reserve Payments Study – Summary Report

2001 Retail Payments Research Project

A Guide to the ATM and Debit Card Industry

The ATM and debit card industry is undergoing significant change. Some of the most dramatic changes include the sharp growth in point-of-sale debit card transactions, the intense competition between online and offline debit, the heavy consolidation of regional EFT networks and third-party service providers, the growing importance of nonbank and third-party processor ownership of networks, and new pricing structures and strategies. This paper provides a guide to the current structure of the ATM and debit card industry. It also highlights some key economic and public policy issues. Among the issues addressed are market concentration, vertical integration and economies of scope, pricing, access, and risk.
Federal Reserve Bank of Kansas City, Payments System Research (2003; updated 2006)

Agencies Issue Frequently Asked Questions on Identity Theft Rules

Six federal agencies issued a set of frequently asked questions (FAQs) today to help financial institutions, creditors, users of consumer reports, and issuers of credit cards and debit cards comply with federal regulations on identity theft and discrepancies in changes of address.
Federal Reserve System Board of Governors (2009)

An Overview of Consumer Data and Credit Reporting

For some time, the Board of Governors of the Federal Reserve System has sought to obtain more detailed and timely information on the debt status, loan payment behavior, and overall credit quality of U.S. consumers. For decades, information of this type has been gathered by credit reporting companies primarily to assist creditors in evaluating the credit quality of current and prospective customers. To evaluate the potential usefulness of these data, the Federal Reserve Board engaged one of the three national consumer reporting companies to supply the credit records, without personal identifying information, of a nationally representative sample of individuals. This article describes the way the credit reporting companies compile and report their data and gives background on the regulatory structure governing these activities. This description is followed by a detailed look at the information collected in credit reports. Key aspects of the data that may be incomplete, duplicative, or ambiguous as they apply to credit evaluation are highlighted in the analysis. The article concludes with a discussion of steps that might be taken to address some of the issues identified.
Federal Reserve System Board of Governors (2003)

Board Approves Proposed Rule Amending Credit Card Provisions of Regulation Z (Truth in Lending)

The Federal Reserve Board proposed rules amending Regulation Z (Truth in Lending) to protect consumers who use credit cards from a number of potentially costly practices.
Federal Reserve System Board of Governors (2009)

Board Issues Interim Final Rule Amending Credit Card Provisions of Regulation Z (Truth in Lending)

The Federal Reserve Board approved an interim final rule amending Regulation Z (Truth in Lending) to require creditors to increase the amount of notice consumers receive before the rate on a credit card account is increased or a significant change is made to the account's terms. The amendments also allow consumers to reject such increases and changes by informing the creditor before the increase or change goes into effect.
Federal Reserve System Board of Governors (2009)

Credit Cards: Past, Present, Future

On March 8, 2009, as part of National Consumer Protection Week, the Federal Reserve Board's Division of Consumer and Community Affairs sponsored a webinar on changes in the credit card market; current trends in consumer research on credit cards, including consumer testing; new credit card regulations that will take effect in 2010; and consumer tools and information available from the Federal Reserve. The webinar included a question and answer segment.

Please note: This is a recorded event; the real-time polling feature of this webinar is no longer active.

View presentation (49:41, requires Adobe Flash Player)
View presentation slides (1.77 MB, 32 pages)

Credit Card Disclosures, Solicitations, and Privacy Notices: Survey Results of Consumer Knowledge and Behavior

Presents the results of surveys undertaken to assess consumers ’ knowledge of, familiarity with, and attitudes about credit card disclosures, credit card solicitations, and privacy notices received from their financial institutions.
Federal Reserve System Board of Governors (2006)

Credit Report Accuracy and Access to Credit

This paper examines the possible effects that data limitations have on consumers by estimating the changes in consumers' credit scores that would show up in their credit records. It also investigates whether different patterns emerge when individuals in the sample are grouped by strength and depth of credit history and selected demographic characteristics. Such segmentation allows the determination of whether the effects of data limitations differ for various subgroups of the population.
Federal Reserve System Board of Governors (2004)

FFIEC Agencies Issue Guidance on Credit Card Account Management and Loss Allowance Practices

Under the auspices of the Federal Financial Institutions Examination Council, the Office of the Comptroller of the Currency, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision have issued guidance governing account management and loss allowance practices for credit card lending.
Federal Reserve System Board of Governors (2003)

Lessons from a Storm

This video demonstrates how having a bank account proved to be a big advantage to Hurricane Katrina victims who were trying to get back on their feet and re-establish a firm financial footing. Read the press release , watch the video in English or Spanish, or order the video as a dual-language DVD.

Nonbanks in the Payments System

Nonbanks have always been a key component of the nation’s payments system. In recent years, however, nonbanks have become even more prominent. This heightened visibility raises several questions. What payments activities are nonbanks engaged in? What roles do nonbanks play in specific payments types? What types of risk are potentially associated with nonbank participation? This paper begins to address these questions. Preliminary findings include: (1) Nonbanks are involved in a myriad of activities and roles, both in traditional and emerging payments types; (2) Nonbank business relationships with banks and other participants in the payments systems are often highly complex and interrelated; (3) Nonbanks are rarely directly involved in settlement activities and, hence, appear to be associated with limited settlement and systemic risk; (4) Both nonbanks and banks appear to be increasingly susceptible to operational risk factors.
Federal Reserve Bank of Kansas City, Payments System Research (2003)

Recent Developments in the Credit Card Market and the Financial Obligations Ratio

Over the past fifteen years, U.S. households in the aggregate have devoted an increasing share of their after tax income to the payment of financial obligations. Much of the increase is attributable to a rise in the level of credit card debt, which has raised the share of households' aggregate after tax income that is devoted to credit card payments. This article argues that three important developments in the credit card market over the period account for most of the rise in credit card payments relative to income and played a strong role in the rise of the total financial obligations ratio (FOR).
Federal Reserve System Board of Governors (2005)

Regulation E (Electronic Fund Transfers)

Establishes the rights, liabilities, and responsibilities of parties in electronic funds transfers and protects consumers when they use such systems.

Regulation Z (Truth in Lending)

Prescribes uniform methods for computing the cost of credit, for disclosing credit terms, and for resolving errors on certain types of credit accounts.

Regulation AA (Unfair or Deceptive Acts or Practices)

Establishes consumer complaint procedures and defines unfair or deceptive practices in extending credit to consumers.

Regulation DD (Truth in Savings)

Requires depository institutions to provide disclosures to enable consumers to make meaningful comparisons of deposit accounts.

Report to the Congress on Credit Scoring and Its Effects on the Availability and Affordability of Credit

Section 215 of the Fair and Accurate Credit Transactions Act of 2003 (Fact Act) directs the Federal Reserve Board and the Federal Trade Commission (FTC) to study how credit scoring has affected the availability and affordability of credit and insurance, to determine the relationship between credit scores and actual credit losses and insurance claims, and to determine how these relationships vary for the population groups protected under the Equal Credit Opportunity Act (ECOA). In addition, section 215 directs the Board and the FTC to study the extent to which the consideration of certain factors included in credit-scoring and insurance-scoring models could have a negative or differential effect on populations protected under ECOA and the extent to which alternative factors could be used in credit scoring to achieve comparable results with less negative effect on protected populations. In preparing the study, the Federal Reserve took the lead in assessing the effects of credit scoring on credit markets, the subject of the present document; the FTC took the lead in the area of insurance and has issued a separate report on the topic.
Federal Reserve System Board of Governors (2007)

Report to the Congress on the Disclosure of Point-of-Sale Debit Fees

This report presents findings by the Federal Reserve Board on the disclosure of fees that a depository institution imposes when a customer chooses to secure a point-of-sale (POS) debit transaction by providing a personal identification number (PIN). The economic importance of debit card transactions has grown steadily in recent years. In 2004, consumers in the United States will conduct an estimated 18.6 billion debit card transactions, an amount that represents approximately 53 percent of all card-based purchase transactions. Consumers will secure more than one-third of these debit transactions with a PIN and the remainder with a signature. Recently, some depository institutions have instituted a fee that applies when a consumer conducts a PIN debit transaction. Some members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs are concerned that consumers may be unaware of the existence or the source of these fees. To address this concern, committee members requested that the Federal Reserve Board conduct this study.
Federal Reserve System Board of Governors (2004)

Survey of Consumer Finances

The Survey of Consumer Finances (SCF) is a triennial survey of the balance sheet, pension, income, and other demographic characteristics of U.S. families. The survey also gathers information on the use of financial institutions.
Federal Reserve System Board of Governors (Various Years)

The Future of Retail Electronic Payments Systems: Industry Interviews and Analysis

To understand the implications of developments in electronic payments and to gather more information about barriers to payments innovation, the Federal Reserve's Payments System Development Committee asked Federal Reserve staff to hold discussions with a broad range of parties interested in the evolution of the payments system. Special attention was given to issues involving the clearing and settlement of retail electronic payments. Part 1 of the following report provides an informative overview of the diverse opinions expressed in the discussions. Part 2 summarizes and provides further information, where possible, on specific comments and recommendations made by those interviewed. These comments and recommendations are directed at both the public and private sectors.
Federal Reserve System Board of Governors (2002)

The Profitability of Credit Card Operations of Depository Institutions

Section 8 of the Fair Credit and Charge Card Disclosure Act of 1988 directs the Federal Reserve Board to transmit annually to the Congress a report about the profitability of credit card operations of depository institutions. This is the 12th report. The analysis here is based to a great extent on information from the Consolidated Reports of Condition and Income (Call Report) and two Federal Reserve surveys, the Quarterly Report of Credit Card Interest Rates and the Survey of Terms of Credit Cards Plans.
Federal Reserve System Board of Governors (2002)

The Use of Checks and Other Noncash Payment Instruments in the United States

Statistical estimates indicate that the use of checks in the United States has been declining since the mid-1990s, even as the population and level of economic activity have been increasing. In contrast, the use of electronic payments has been growing at high and accelerating rates. Nonetheless, the paper check remains the predominant means of making retail payments and will likely continue to play a significant role in the U.S. payment system for the foreseeable future. The number and value of checks paid vary across depository institutions according to type, size, and location, in part as a result of differences in the use of checks and electronic payments by households, businesses, and governments. Overall, household's share of total checks written has increased relative to that of businesses and governments.
Federal Reserve System Board of Governors (2002)

Trends in the Use of Payment Instruments in the United States

This article analyzes the results of two payments surveys conducted in 2004, one of depository institutions (the 2004 depository institution survey) and one of electronic payments networks, processors, and credit card issuers (the 2004 electronic payment survey). It also draws on the results of two similar surveys conducted in 2001.
Federal Reserve System Board of Governors (2005)

U.S. Consumers and Electronic Banking, 1995-2003

This article draws on data from two nationwide surveys to look at consumers' use of e-banking technologies, particularly as it relates to consumer demographic characteristics and perceptions, and the relationship between these factors and the characteristics of selected e-banking products and services. The article examines changes in consumers' use of e-banking technologies between 1995 and 2003, a period of substantial change and growth in the electronic financial services marketplace, and shifts in perceptions in recent years. It concludes with a discussion of the implications of trends in the use of e-banking for consumer educators.
Federal Reserve System Board of Governors (2004)