Estimating the Cost to US Consumers to Access Cash.

This presentation will discuss the costs that US consumers pay to acquire cash, which can vary considerably depending on where consumers acquire cash. Using data from consumer surveys, depository institution reports, and location data, the analysis of cash access costs focuses on three aspects: the likelihood of individuals paying a fee, the difference in costs across age and household income groups, and the distance traveled and time needed to acquire cash. We also explore how the resiliency of cash access may affect the access costs for different populations if the number of cash access points were to decrease. Understanding these consumer costs will help the Federal Reserve understand how demand for cash may change as consumer payments evolve and ensure that the Federal Reserve continues to fulfill its FedCash Service mission to meet the public’s demand for currency and coin.