Geoffry R. Gerdes


Geoffrey R. Gerdes works at the Federal Reserve Board’s Division of Reserve Bank Operations and Payment Systems. The paper Trends in the Use of  Payment Instruments in the US  (2004) has been prepared with  with Jack K. Walton II, May X. Liu and Darrel W.
Parke.Namirembe Mukasa, of the Board’s Division of Reserve Bank Operations and Payment Systems, provided research assistance.

Content Posted by Geoffry R. Gerdes

TRENDS IN THE USE OF PAYMENT INSTRUMENTS IN THE US (2004)

This article analyzes the results of two payments surveys conducted in 2004, one of depository institutions and one of electronic payments networks, processors, and credit card issuers. It also draws on the results of two similar surveys conducted in 2001. The primary purposes of the 2004 surveys were to estimate the number and value of payments made by means of several types of noncash payment instruments in 2003 and to estimate rates of change from 2000 to 2003. The surveys have focused on the amount of and trends in noncash payments. Indirect evidence discussed later, however, suggests that the use of cash has declined as a share of all payments in recent decades. Whether the total number of cash transactions has begun to decline, as has the number of checks, is less clear.

2. TRENDS IN PAYMENT INSTRUMENT USE

This article analyzes the results of two payments surveys conducted in 2004, one of depository institutions and one of electronic payments networks, processors, and credit card issuers. It also draws on the results of two similar surveys conducted in 2001. The primary purposes of the 2004 surveys were to estimate the number and value of payments made by means of several types of noncash payment instruments in 2003 and to estimate rates of change from 2000 to 2003. The surveys have focused on the amount of and trends in noncash payments. Indirect evidence discussed later, however, suggests that the use of cash has declined as a share of all payments in recent decades. Whether the total number of cash transactions has begun to decline, as has the number of checks, is less clear.