Cheques Rank Last For Satisfaction Among All Payment Methods, New Survey Shows
Cheques need to “cheque-out,” according to a new survey on payment methods.
The PYMNTS Disbursement Satisfaction Index measures consumer satisfaction across payment methods. The report surveyed 2,528 consumers in Q2 2017 and examined disbursements in the form of cash, cheque, direct deposit, instant credit pushed to a card, and non-instant credit pushed to a card. Finishing dead last in the report, and by a wide margin, was payment via cheque, which ranked only 4.4 out of 100.
In comparison, the average Disbursement Index Score across all use cases and payment methods was 52.8, a whopping 12x higher than cheques. Consumer satisfaction was highest for direct deposit, followed by instant credit pushed to a card (71.9), cash (67.1) and non-instant credit pushed to a card (48.3). The Index covers disbursements from insurance companies and the payment of claims, employers and payroll, lenders and loan proceeds, merchants and store refunds, law firms and legal settlements, and employees and corporate reimbursements, among others.
According to a Federal Reserve study, the number of businesses that used cheques for business-to-business payments has steadily declined year after year. In 2004, it was 81 percent. By 2007, it was down to 74 percent. In 2016, only half of businesses still used cheques.
“The progression of speed and experience for consumers from paper [cheque] to direct deposit and now push payments is undeniable,” Ingo Money chief executive officer Drew Edwards said in a statement. “Consumers expect every aspect of their lives to be instant, including how they get paid and how quickly they can access funds. Creating a benchmark for measuring how and why consumers get paid, as well as their preferences for each [payment method], is critical for continuing to evolve ever faster disbursement methods.”
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