This Hidden Costs of Bill Pay report uses doxoINSIGHTS data combined with other research to provide the first ever comprehensive look at America’s top concerns while managing and staying on top of bills, and uncovers $577 in additional costs each year that the average household pays in “hidden costs” on top of their average bills.
Key Report Findings
- $27 in Payment Account Fraud and Identity Theft Costs
- While total identity fraud losses reach $16.9B, much of this expense is absorbed by card issuers and merchants. Even so, the average household still incurs direct out of pocket losses of $27 each year to identity theft or payment account fraud, for a total of $3.5 billion – not accounting for the additional consumer time and expense required to repair identity. Over 150M consumers have had their payment or identity data compromised in recent hacks of U.S. businesses, and over 900 municipalities and billers were hacked in 2019 alone.
- $117 in Overdraft Fees
- The average bank overdraft fee is over $30 per incident, and bill payments are the primary cause of bank overdrafts. Each year banks charge consumers over $15 billion in overdraft fees, or about $117 per household.
- $132 in Late Fees
- Missing or paying a bill late often incurs late fees, and 54% of households incur one or more late fees every year. This totals over $17 billion in household expense, or $132 per household.
- $301 in Added Costs of Credit
- Staying current on bills and debt payments is a primary factor for strengthening credit. doxo analysis shows that staying ahead on payments and improving credit score by 35 points can save the average household $301 per year in interest expense. The average U.S. household carries over $72,000 in revolving debt – for mortgages, auto loans, and credit cards – so boosting credit and qualifying for lower interest rates significantly reduces expenses.
doxoINSIGHTS leverages consumer surveys and doxo’s unique aggregate bill pay data set comprised of actual bill payment activity to confirmed household service providers across the country. To learn more, download the complete report below.