non-cash transactions matt dorf. what are non-cash transactions? credit card debit card gift cards...
Post on 19-Dec-2015
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![Page 1: Non-Cash Transactions Matt Dorf. What are Non-Cash Transactions? Credit Card Debit Card Gift cards Stored value ACH Online banking bill payment (OBBP)](https://reader030.vdocuments.us/reader030/viewer/2022032703/56649d2d5503460f94a03615/html5/thumbnails/1.jpg)
Non-Cash TransactionsMatt Dorf
![Page 2: Non-Cash Transactions Matt Dorf. What are Non-Cash Transactions? Credit Card Debit Card Gift cards Stored value ACH Online banking bill payment (OBBP)](https://reader030.vdocuments.us/reader030/viewer/2022032703/56649d2d5503460f94a03615/html5/thumbnails/2.jpg)
What are Non-Cash Transactions?•Credit Card•Debit Card•Gift cards •Stored value•ACH•Online banking bill payment (OBBP)•Mobile payments•Virtual checks•Contactless
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Some interesting facts
•Use of cash peaked in mid-90’s and has been declining since1
•Electronic forms of payment increased from 78% in 1995 to almost 92% in 20071
•Debit card use almost doubled between 1995 and 19981
•ATM/Debit Card Usage1
▫Under 30 Years Old – almost 86%▫Over 60 Years old – almost 50% (tripled
since 1995)
![Page 4: Non-Cash Transactions Matt Dorf. What are Non-Cash Transactions? Credit Card Debit Card Gift cards Stored value ACH Online banking bill payment (OBBP)](https://reader030.vdocuments.us/reader030/viewer/2022032703/56649d2d5503460f94a03615/html5/thumbnails/4.jpg)
What happened to cash?
• From 1995 to 2003 the number of ATM’s in the US tripled, in 2006 the number dropped for the first time5
![Page 5: Non-Cash Transactions Matt Dorf. What are Non-Cash Transactions? Credit Card Debit Card Gift cards Stored value ACH Online banking bill payment (OBBP)](https://reader030.vdocuments.us/reader030/viewer/2022032703/56649d2d5503460f94a03615/html5/thumbnails/5.jpg)
Where did all the checks go?• In 2003, electronic payments in US exceed
check payments3
• Check 21, 2003▫Image deposits or Substitute Checks
• ACH – Check conversion• Gov’t gave checks the ax as of March 2011
▫Social Security, Supplemental Security Income, Veterans, Railroad Retirement and Office of Personnel Management
• Some banks accepting photos of checks via scanner and iPhone
![Page 6: Non-Cash Transactions Matt Dorf. What are Non-Cash Transactions? Credit Card Debit Card Gift cards Stored value ACH Online banking bill payment (OBBP)](https://reader030.vdocuments.us/reader030/viewer/2022032703/56649d2d5503460f94a03615/html5/thumbnails/6.jpg)
Who’s on board?• Public transportation systems
▫More than ½ of largest Public Transit • Social Security Payments – rolled out in 2008• U.S. Food Stamps• Airlines – no longer accepting cash• Non-profits accepting donations via text-mGive
▫From 9 p.m. on Tuesday to 10 a.m. on Thursday $3.4 million was raised just from text message donations
• Some supermarkets no longer accepting checks • Even Monopoly!
![Page 7: Non-Cash Transactions Matt Dorf. What are Non-Cash Transactions? Credit Card Debit Card Gift cards Stored value ACH Online banking bill payment (OBBP)](https://reader030.vdocuments.us/reader030/viewer/2022032703/56649d2d5503460f94a03615/html5/thumbnails/7.jpg)
Online Payments
•Online Bill Pay10
▫Over 2 million U.S. households adopted online banking and bill payment during in 2009
▫69.7 million households (4 out of 5 households with Internet access) use online banking services
▫64.4 million households pay at least one bill online•e-Commerce sales (retail)4
▫Total retail sales grew 4% from 2006 to 2007▫E-Commerce sales grew 20% from 2006 to 2007
![Page 8: Non-Cash Transactions Matt Dorf. What are Non-Cash Transactions? Credit Card Debit Card Gift cards Stored value ACH Online banking bill payment (OBBP)](https://reader030.vdocuments.us/reader030/viewer/2022032703/56649d2d5503460f94a03615/html5/thumbnails/8.jpg)
Additional Online Payments• Alternative Online Payments – account info not given to
merchant▫ Virtual card - debit or credit card number generated via
Internet to purchase online▫ Instant Credit – deferred billing▫ E-Wallet - online account with access to pay multiple web
merchants• Person to Person (P2P)
▫ Almost 50 percent of consumers expressed interest in using electronic P2P12 sending money to a child at college sending money out of the country splitting the cost of a gift with family members, co-workers or
friends▫ Offered by Pay Pal and various banks
![Page 9: Non-Cash Transactions Matt Dorf. What are Non-Cash Transactions? Credit Card Debit Card Gift cards Stored value ACH Online banking bill payment (OBBP)](https://reader030.vdocuments.us/reader030/viewer/2022032703/56649d2d5503460f94a03615/html5/thumbnails/9.jpg)
What’s Next?• Contactless• Mobile
▫ iPhone - “bumping”• Send money via text message - OboPay• ShopSavvy
▫Allows you to take a picture of a barcode with your cell phone, tell you if it is being sold for less somewhere else, and if so, purchase it immediately via PayPal
• Pay medical bills online – MedPayOnline• Secure Vault Payment
![Page 10: Non-Cash Transactions Matt Dorf. What are Non-Cash Transactions? Credit Card Debit Card Gift cards Stored value ACH Online banking bill payment (OBBP)](https://reader030.vdocuments.us/reader030/viewer/2022032703/56649d2d5503460f94a03615/html5/thumbnails/10.jpg)
Expanded Access
•Prepaid cards – no credit check▫Green Dot▫Sky Light
•Higher One*•Sallie Mae•The Minotaur Group - "Con Dios
Financial" ▫Aimed at unbanked Spanish population in CA▫Payroll deposited directly onto card which also has debit and ATM features
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What’s Behind The Trend
•Post Office – eliminating mail days•Concerns about security is decreasing4
•Convenience •Environmentally friendly•More options available to choose from•Demands – Speed!•More people with access to technology
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Sources• 1: http://www.philadelphiafed.org/research-and-data/publications/business-
review/2009/q3/brq309_changes-in-electronic-payment.pdf• 2: http://www.philadelphiafed.org/payment-cards-center/tools-for-researchers/
consumer-statistics/• 3: http://www.federalreserve.gov/pubs/bulletin/2008/pdf/payments08.pdf• 4:
http://www.frbatlanta.org/documents/news/conferences/09_emerging_rp_crowe.pdf
• 6:http://www.nytimes.com/2010/04/29/technology/29cashless.html?scp=1&sq=electronic%20payments&st=cse
• 7:http://www.philadelphiafed.org/payment-cards-center/publications/pcc-note/2009/pcc-note_credit-card-act-2009.pdf
• 8: http://www.bos.frb.org/economic/wp/wp2009/wp0901.pdf• 9: http://www.philadelphiafed.org/payment-cards-center/publications/discussion-
papers/2009/D2009AprilSEPTA.pdf• 10: http://investors.fiserv.com/releasedetail.cfm?ReleaseID=396336• 11:http://www.businesswire.com/portal/site/home/permalink/?
ndmViewId=news_view&newsId=20100426005597&newsLang=en