Debit Volume Down Against Credit In 20-Year First

Debit card purchase volume and purchase transactions failed to gain share versus credit cards in 2012, a development that marked a 20-year first, The Nilson Report indicated on November 11.

Credit cards accounted for 52.82 percent of spending in 2012, compared to 47.18 percent for debit cards in 2012. By comparison, these figures were 52.63 percent and 47.37 percent, respectively, in 2011.

“There is a finite amount of money in deposit accounts owned by consumers,” David Robertson, publisher of The Nilson Report, said in a November 11 statement. “Credit cards are different. Because they can borrow money and pay it back over time, they can spend more on credit than they have in their own accounts.”

To learn which issuers had the biggest share of credit and debit use, read the full press release here.

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