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Insider's report on payments were three times as likely to be fraudulent as card-present
payments, although the Fed said it found little discernible
difference in corresponding values.
Scrutinizing the Fed's Meanwhile check fraud, once a major scourge, has dropped
payments data significantly. The fraud rate for checks in 2012 was 0.45 of
a basis point by volume and 0.39 of a basis point by value.
PIN debit fraud, by number, was the same as with checks.
By Patti Murphy By value, however, the fraud rate for PIN debit was much
higher, 1.71 basis points.
ProScribes Inc.
he Federal Reserve Board recently released the
latest in its triennial reports on payments, and Highlights of the Fed's payments study
not surprisingly, the data indicates that card pay- The Fed's Payments Study offers preliminary
T ments continue to grow at a healthy clip – but findings from three separate data collection
not necessarily at the expense of checks. In fact, although efforts undertaken in 2012. One collected
U.S. consumers may be writing fewer checks, they're writ- information on noncash transactions handled
ing checks for larger amounts than ever before. by a large sample of banks and credit unions.
Another queried card networks and issuers.
According to the 2013 Federal Reserve Payments Study, The third was a check study based on a
Americans made an estimated 122.8 billion noncash random sample of checks. Here are some of
payments in 2012 (excluding wire transfers) worth a the key metrics reported, all for 2012:
combined value of $79 trillion. Included in those numbers
were 21 billion checks. Some (2.7 billion consumer checks, There were a total of 73.8 billion card
down from 3.3 billion in 2009) were converted to automated transactions.
clearing house (ACH) payments; but the lion's share were
cleared as checks. In all, banks paid 18.2 billion checks • 47 billion transactions were completed
totaling more than $60 trillion in 2012, according to the Fed's using debit cards.
data. The total represents a combined annualized growth
rate of -8.8 percent in the number of checks paid between • 23.8 billion were with credit cards.
2009 and 2012, the Fed said. Yet the average value of checks
paid increased during the same period from $1,291 to $1,420. • 3.1 billion were prepaid debit card
payments.
The steepest declines were identified in the number of
business-to-consumer (B2C) checks written: from 5.2 billion • Private-label cards were used in 8.5
in 2009 to 3.1 billion in 2012. Business-to-business (B2B) billion payment transactions, with
checks totaled 5.9 billion, down from 7.9 billion in 2009, the most of that (6.1 billion) being prepaid
Fed said. (gift/loyalty) cards.
• There were an estimated 31.1 million
Consumers still write the preponderance of checks: 9.6 fraudulent transactions in the noncash
billion consumer-to-business checks (C2B) and 2.4 billion payment mix, valued at $6.1 billion.
consumer-to-consumer (C2C) checks were written,
according to the Fed. The fewest number of checks written • General-purpose credit and signature
in 2012 (an estimated 900 million) were C2B checks at debit cards were the source of 92
merchant checkouts. percent of the incidents and 65 percent
of the value of all payment fraud.
For the first time since it began collecting data on noncash
payments (in 2000), the Fed has included in its latest study • 3.4 billion checks were deposited to
estimates of unauthorized payment transactions (third- banks and credit unions electronically
party fraud). In 2012 there were 31.1 million unauthorized using RDC services.
payment transactions (excluding wire transfers and cash)
valued at $6.1 billion, with the dominant share involving • 93 percent of RDC deposits were made
credit cards. by business customers.
• 48 percent of consumer RDC trans-
In 2012, fraud involving general-purpose credit and actions were made using mobile
signature-debit cards outstripped all other categories of devices.
fraud: 3.60 basis points by number and 8.27 basis points
by value, according to the Fed's data. (A basis point is 1/100
of 1 percent, or 0.1 percent.) Card-not-present transactions
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Insider's report on payments were three times as likely to be fraudulent as card-present
payments, although the Fed said it found little discernible
difference in corresponding values.
Scrutinizing the Fed's Meanwhile check fraud, once a major scourge, has dropped
payments data significantly. The fraud rate for checks in 2012 was 0.45 of
a basis point by volume and 0.39 of a basis point by value.
PIN debit fraud, by number, was the same as with checks.
By Patti Murphy By value, however, the fraud rate for PIN debit was much
higher, 1.71 basis points.
ProScribes Inc.
he Federal Reserve Board recently released the
latest in its triennial reports on payments, and Highlights of the Fed's payments study
not surprisingly, the data indicates that card pay- The Fed's Payments Study offers preliminary
T ments continue to grow at a healthy clip – but findings from three separate data collection
not necessarily at the expense of checks. In fact, although efforts undertaken in 2012. One collected
U.S. consumers may be writing fewer checks, they're writ- information on noncash transactions handled
ing checks for larger amounts than ever before. by a large sample of banks and credit unions.
Another queried card networks and issuers.
According to the 2013 Federal Reserve Payments Study, The third was a check study based on a
Americans made an estimated 122.8 billion noncash random sample of checks. Here are some of
payments in 2012 (excluding wire transfers) worth a the key metrics reported, all for 2012:
combined value of $79 trillion. Included in those numbers
were 21 billion checks. Some (2.7 billion consumer checks, There were a total of 73.8 billion card
down from 3.3 billion in 2009) were converted to automated transactions.
clearing house (ACH) payments; but the lion's share were
cleared as checks. In all, banks paid 18.2 billion checks • 47 billion transactions were completed
totaling more than $60 trillion in 2012, according to the Fed's using debit cards.
data. The total represents a combined annualized growth
rate of -8.8 percent in the number of checks paid between • 23.8 billion were with credit cards.
2009 and 2012, the Fed said. Yet the average value of checks
paid increased during the same period from $1,291 to $1,420. • 3.1 billion were prepaid debit card
payments.
The steepest declines were identified in the number of
business-to-consumer (B2C) checks written: from 5.2 billion • Private-label cards were used in 8.5
in 2009 to 3.1 billion in 2012. Business-to-business (B2B) billion payment transactions, with
checks totaled 5.9 billion, down from 7.9 billion in 2009, the most of that (6.1 billion) being prepaid
Fed said. (gift/loyalty) cards.
• There were an estimated 31.1 million
Consumers still write the preponderance of checks: 9.6 fraudulent transactions in the noncash
billion consumer-to-business checks (C2B) and 2.4 billion payment mix, valued at $6.1 billion.
consumer-to-consumer (C2C) checks were written,
according to the Fed. The fewest number of checks written • General-purpose credit and signature
in 2012 (an estimated 900 million) were C2B checks at debit cards were the source of 92
merchant checkouts. percent of the incidents and 65 percent
of the value of all payment fraud.
For the first time since it began collecting data on noncash
payments (in 2000), the Fed has included in its latest study • 3.4 billion checks were deposited to
estimates of unauthorized payment transactions (third- banks and credit unions electronically
party fraud). In 2012 there were 31.1 million unauthorized using RDC services.
payment transactions (excluding wire transfers and cash)
valued at $6.1 billion, with the dominant share involving • 93 percent of RDC deposits were made
credit cards. by business customers.
• 48 percent of consumer RDC trans-
In 2012, fraud involving general-purpose credit and actions were made using mobile
signature-debit cards outstripped all other categories of devices.
fraud: 3.60 basis points by number and 8.27 basis points
by value, according to the Fed's data. (A basis point is 1/100
of 1 percent, or 0.1 percent.) Card-not-present transactions
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