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Spending by debit card continued to grow faster than by credit card in September, but credit showed its strongest gain this year, according to a report Thursday from the nation’s largest payments CUSO.
Velera’s monthly Payments Index showed spending in September rose 5.3% by debit from a year earlier, and 2.9% by credit — the largest advance since a 4.0% gain in December 2024.
In August, spending rose 1.9% by credit and 5.3% by debit.
Velera bases its Payments Index on data from credit unions that have been processing payments with it since January 2023. This month’s report encompassed 3.5 billion transactions valued at $178 billion of credit and debit card activity in the 12 months ending Sept. 30.
Total credit card balances increased steadily from June through August, then leveled off in September. Total credit card balances in September were just 0.5% higher than a year earlier. The average credit card balance was $2,958 in September, reflecting a $4 increase from the prior year and a $7 decline from the previous month’s year-to-date high of $2,965.
“In line with seasonal patterns, the delinquency rate rose in September, reaching 2.54% – the second-highest level in 2025 after January,” the report said. “Month over month, the rate increased by 12 basis points. Despite this rise, the delinquency rate was 8 basis points lower year over year.”
Jason Medick, VP of Marketing Consulting for Velera’s Advisors Plus Consulting, said credit union clients are moving beyond the traditional ‘spend and get’ campaigns and incorporating behavioral trends to encourage members to spend.
“As the holiday shopping season seems to start earlier every year, we are also seeing holiday campaigns starting in October to match consumer spending patterns. With 2025 anticipated to be our busiest year ever for custom campaigns, it’s important for credit unions to be in market with incentives to capture consumer holiday spend – and ensure their cards are loaded in members’ digital wallets to maintain top-of wallet status.”
Contact Jim DuPlessis at JDuPlessis@cutimes.com.
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