The Nilson Report, a noted payments industry newsletter, hasreported that debit cards lost purchase volume and transactions tocredit cards in 2012.
|This seemingly small shift, if accurately calculated, wouldreverse a 20-year trend which has seen debit cards continue to takepurchase volume and transactions away from credit cards, along withchecks and cash.
|The Carpinteria, Calif., firm, did not cite the source for thedata it reported in its statement on Monday.
|According to the company, credit cards accounted for 52.82% ofspending in 2012 compared to 47.18% for debit cards, while in 2011credit cards accounted for 52.63% and debit cards accounted for47.37% of $4.301 trillion in purchase volume.
|The firm also forecast the trend continuing, suggesting that by2017, 54.72% of transaction volume would go to credit cards and45.28% to debit cards.
|“There is a finite amount of money in deposit accounts owned byconsumers,” said David Robertson, publisher of The Nilson Report,offering a reason for the shift. “Credit cards are different.Because they can borrow money and pay it back over time, they canspend more on credit than they have in their own accounts.”
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