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ATM/debit card use rises
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April 5, 1999: 12:24 p.m. ET
Americans use ATM/debit cards average of 16.3 times monthly, survey shows
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NEW YORK (CNNfn) - American consumers are increasingly relying on ATM/debit cards for everyday transactions, according to a survey released Monday.
ATM/debit cards look like credit cards but deduct the amount of the purchase directly from a checking account. Credit cards create a balance which can be paid off in installments.
A survey by Star System Inc. showed that consumers used their ATM/debit cards, on average, 16.3 times per month in 1998, compared to 15.4 times monthly in 1997.
The results also show that ATM/debit card usage has almost doubled from 8.6 times per month when Star System began its surveys in 1994.
Consumers appear to be taking to all-electronic transactions in their everyday buying.
The survey showed that 61 percent of the respondents preferred authorizing a purchase by entering a personal identification number (PIN) rather than using their signature, as with checks or check cards.
Increased security, convenience and faster service were the reasons for the preference toward PIN transactions, Star System said.
An unfortunate side effect for consumers may be that they spend an average of 36 percent more when using an ATM/debit card than they do using other methods. In last year's study, respondents estimated they spent 24 percent more when using ATM/debit cards.
Women, in particular, are taken with ATM banking technology. For example, 54 percent of women reported conducting balance inquiries using an ATM while only 45 percent of men did so. Women were also more likely to use their cards for ordinary transactions, such as buying gas or purchasing groceries.
Rising ATM fees haven't escaped the notice of U.S. consumers. According to the study, consumers are using their own financial institution's ATMs more often than ever in an effort to avoid the additional fees charged by other banks. 
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