As digital wallets and contactless cards gain ground, the way consumers pay at physical stores is shifting fast. But which payment methods are actually winning at the checkout counter? What are the top payment preferences in brick-and-mortar locations, and what do today’s shoppers reach for first—is it tap of a phone, a chip-enabled card, or still, for some, good old-fashioned cash?
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: Surcharging on Card Transactions: In Search of Balance
Preference of Credit, Debit, Cash Usage by Consumers in Physical Locations in Past 12 Months, by Percentage
- 42% of consumers prefer major credit card usable anywhere.
- 28% of consumers prefer major debit card usable anywhere
- 14% of consumers prefer cash.
Source: North American PaymentsInsights, 2024
About Report
Charging customers extra for using a credit card—commonly referred to as surcharging—might seem like a practical way for merchants to recover processing fees. However, in many cases, the potential backlash outweighs the benefit. With more consumer-friendly payment options available and a growing emphasis on seamless checkout experiences, passing costs directly to shoppers can quickly become a liability.
A new report from Javelin Strategy & Research takes a close look at how surcharging is playing out in today’s market. It outlines the legal and operational risks merchants face, the obligations involved, and how different businesses are approaching this tactic. The report also compares two real-world surcharging strategies used by small businesses and highlights alternative ways to boost margins without turning customers off.
