Two-Thirds of Consumers Have Forgotten About At Least One Recurring Payment

Thu, 01 April 2021  |  payments 

A new study from Chase around consumer habits related to recurring payments finds that consumers increasingly rely on recurring credit card payments, care about knowing where their credit cards are digitally stored, and remain focused on getting a better handle on their finances. However, the Chase survey found that sixty percent of respondents have forgotten about at least one recurring payment, and three-Quarters (71%) of respondents estimate they waste more than $50 each month, which can impact monthly balances and support expenses that are simply no longer needed

Recurring Payments are Here to Stay

Almost every online purchase offers an opportunity to add a credit card for future or recurring payments. What was once a couple of clicks, can now be done with one touch. However, these payments may lead to confusion over what cardmembers are actually spending each month.

• Seventy-eight percent of respondents have a minimum of one recurring charge on their cards each month; 40% have between three and five. Cardmembers crave simplicity and frictionless payment options when given the choice.
• Almost 70% of consumers note that recurring payments can make it easier to manage and track their money. Conversely, 55% of respondents admit they don’t know how much is taken out each month in the form of recurring payments.

Cardmembers Want More Context

The survey further indicated that consumers want to know where their financial information lives online, including where their credit cards are stored.

• Sixty percent believe that if they know where their card is stored, it will help them have a stronger grasp on their recurring payments and finances
• More than half (56%) say recurring payments are a hassle to track down and on average it takes about three months for them to cancel unneeded recurring payments
• Nearly all respondents (90%) note that it would be valuable to know where their card is stored at all times. Chase’s digital tools provide a clearer picture of overall finances and a foundational understanding of the short and long-term impact of recurring payments.

Source: Chase