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Credit Card Applications » News » Other » Debit Card Transactions Continue to Escalate

Debit Card Transactions Continue to Escalate

July 29, 2010
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The world of banking and finance continue to bounce back as the US recession comes into a halt. A recent study conducted by an ATM/Debit networks says that a large chunk of the Debit Card growth can be attributed to the mounting usage of debit cards even in small-ticket transactions.

ATM/Debit network PULSE released the 2010 Debit Card Issuer Study and asserts that consumers most likely resorted to cashless transactions for both big deal and ordinary expenses. PULSE Executive Vice-President Cindy Ballard said in an e-mail that one of the highlights of this year's Debit Issuer Study is the crucial role debit is playing in aiding the consumers to manage their finances. "As consumers lessened spending in the time of the recession, people used debit even more, usually for small-ticket buys under $20, as they showed a preference in using debit before cash," Ballard added in her statement.

The recession in the last two years had also brought the Americans to prefer debit cards to other forms of payment for their everyday expenses. Apart from the convenience of paying cashless, the study also pointed out that having a handy debit card is a safer option than bringing in bills. There is also a current trend in pay-as-you-go approach where consumers who do not have cash but are scaling down with their budget can smoothly pay for their purchases. In addition, the study pointed out that there is a growing number of merchants accepting small debit transactions. Ballard further stated that they are receiving a number of positive responses over the use of debit transactions upon payment. She said that the recession could have made the consumers wiser in handling their finances.

Reward programs related to debit transactions have also started to thrive which give consumers added benefits. Apart from this, finance experts are also reminding the consumers that using debit instead of credit card will help them rack up debt. Additional charges from using credit cards have grown exponentially leaving the consumers pay unnecessary interest fees.

The study also surveyed banks and card issuers and found out that debit transactions grew just about ten percent across the board. This result can be further highlighted by the difference in growth rate between 2008 and 2009 where debit transactions were powered up by small-ticket transactions. In addition, the survey underlined there is a budding preference of PIN-based transactions to signature debit purchases by the consumers.

However, although much of this is good news to both the consumers and the finance industry, reports on debit fraud have continued to increase. Still, finance experts remain positive about the rise of debit card industry from the economic fallback they have experienced over the last two years. In line with this, Tony Haynes, a comrade in management firm of Oliver Wyman, recommended that the current 'debit momentum' is likely to give birth to more reward programs for the consumers.

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  • Larry
    With the Virgin / Barclaycard signature offer, there seems to be some consumer deception or maybe even outright fraud goin on.   I decided to jump on this offer..  read all the info on it..  was approved for their platinum card, paid the fee, then was only awarded 10,000 points instead of the advertised 20,000.   When i inquired about the less than advertised bonus points, Barclaycard claims only Signiture Visa cardmembers get the 20,000..  as a platinum cardholder, you don't qualify for that level of bonus, so you get 10k instead.   Well, in their current ongoing promotions, it states plain as day that....    Applicants approved for the Visa Signature or Platinum Card with $49 annual fee will receive 20,000 Bonus Points awarded to your Virgin America Rewards Account at the close of the first billing statement in which you make your first purchase or balance transfer (that is not returned or rescinded) and have paid the Annual Fee on the account (and such fee is not rescinded). They don't mention anything about a separate program for platinum cardholders..  However, trying to get someone to resolve this issue with either Virgin or Barclaycard seems to be rather impossible.. Seems to me they're simply drawing people in with the fraudulent offer, then simply saying, oh, we're sorry you don't qualify..  but thanks for signing up for our garbage credit card with insane fees..   
  • CreditLandCom
    Thank you for sharing your experience with us. We have reviewed this offer and you are correct, nowhere it is mentioned that 20,000 Bonus can become a 10,000 Bonus all of a sudden... We will mention this in our review of this card so others can make an informed decision. Another way to get Virgin miles is to get an American Express charge card: The Business Gold Rewards Card® now offers 50,000 Miles, though you do have to spend $5,000 in the first three months of card membership to get it. It also has $0 introductory annual fee for the first year, then $175. http://www.credit-land.com/details/the-business-gold-rewards-card-from-american-express-open.php Premier Rewards Gold Card now offers 25,000 Miles, though you do have to spend $2,000 during your first three months of Card membership. It also has annual fee of $0 for the first year, then $175. http://www.credit-land.com/details/american-express-premier-rewards-gold-card.php While we do not know If any of these offers make sense to you, we are at least sure that you will get advertised bonus in full if you decide to get them... Conversion rates for Virgin America are: 100 Elevate Points = 200 Membership Rewards® Points All the best.
  • Deborah Ellsworth
     would very much like to start a new credit history  by making payments on time I would tohave a credit card that is NOT PREPAYID! I don't need a card with a high limit just something to start a new credit history. Thank You Deborah Ellsworth
  • Deborah Ellsworth
    I would very much like to start a new credit line to get back on track. I DO NOT WANT A PREPAID CARD!! This new credit card if I am approved does not have to hace a high limit just something for me to start over again and prove myself ThankYou. D Ellsworth
  • Miss Edna
    there is a huge problem with the RFIP chip: it is easily compromised. There are already 'readers' in the form of what looks like a cellphone in a case, that scans all the info in the chip by merely walking near a person -- this 'reader' penetrates leather, cloth, spandex, etc. The only thing it will NOT penetrate is METAL. Perhaps one has seen commercials touting metal credit card cases. Here is my hint for a free fix: cut a piece of aluminum foil or use the foil that is used to keep foods fresh, like coffee. Cut it so that when folded once, it forms a sleeve for your credit card. place the credit card in the sleeve, then place the sleeve in your wallet.
  • Robin Parks
    I am looking to apply for the AARP Visa signature card from Chase that offers $100 after spend $500 in first 3 months, no annual fee and 0% interest first year; I don't want to mail in offer because of having to write in Social security #. Can you direct me to the proper on-line site?
  • CreditLandCom
    The Chase bank cards are not currently available at Credit-Land.com, but you can consider applying for the Citi® Dividend Platinum Select® Visa® Card - $100 Cash Back. The cards has similar terms and cash back program.
  • Becky
    This is Becky Now what do I do just waqit for acard to come to me?
  • CreditLandCom
    Once you have applied, you should receive a letter within 10 business days letting you know if you were approved and when your card will arrive. If you did not receive any letter or notification from the issuer, you should contact them directly. Also, you should contact the issuer if you’ve been waiting for your credit card longer than 30 days. Since we are not a bank and don’t issue credit cards, we cannot give you any information about your application or credit card.
  • SavingStar
    Thank you for posting about SavingStar. Just to clarify one sentence in your article, we have over 5 million members (not 500). Thanks, Josh
  • CreditLandCom
    Sorry for the misprint. We’ve corrected the sentence. Thank you for noticing that.
  • Eric
  • John Stifler
    I think almost all people that familiar with internet, will hardly fall to these scams, but for now, I think people that use computer but don't familiar with internet things, and they has a phone line at their home, they should be warned more than internet users. I think senior people usually got scammed by these kind of "tech support" scams. Found so many reports about them since years ago at complain board sites like http://callercenter.com. We as younger, and know more about this stuff, should help and share information to they who needed it, especially older people.
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