Debit-card use is on the rise. It's now the preferred card of choice -- at Visa -- when it comes to purchases. On a dollar-volume basis, Visa-branded debit cards inched ahead of credit-card purchases during the last three month of 2008.
From the Wall Street Journal (hat tip Don in SW OH):
The urge to not splurge by thrift-conscious consumers is giving the debit-card revolution a new push. On Wednesday, Visa Inc. reported that the total dollar volume of purchases made using its branded debit cards surpassed credit-card purchases for the first time during the last three months of 2008. The $206 billion in U.S. debit-card transactions processed by Visa were 50.4% of the San Francisco company's total transaction volume in the period, up from about 40% in 2003.
"The reality is that the vast majority of consumers want to pay as they go," said Stacey Pinkerd, who oversees Visa's debit-card business.
Credit-card issuers better be careful. If debit cards ever become the overwhelming choice for payments, card issuers will have to figure out another way to enrich themselves (you'd think that interest fees will fall as debit-card use continues to rise).
Read the rest of the Journal story here. Read More...