Payment declines are becoming less common, with payment declines overall falling from 18% to 12% in two years. However, financially struggling consumers continue to experience them at high rates.
These consumers often experience payment declines that prevent them from purchasing even essential goods. In fact, 7.1% of grocery payments attempted by struggling consumers came back declined — 12 times higher than the share among financially stable consumers.
At the same time, debit card transactions are making up a greater portion of payment declines. Debit declines now outnumber credit more than threefold.
These are just some of the findings detailed in “How People Pay: Paycheck-to-Paycheck Consumers Grapple with Payment Declines,” a PYMNTS Intelligence exclusive report. This edition examines the issue of payment declines. It draws on insights from a survey of 2,261 U.S. consumers conducted from Sept. 9 to Sept. 20.
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