Credit to Debit, Are Consumers Changing the Way They Spend?

Not too long ago, for the first time in United States history, Visa reported that their debit sales volume surpassed their credit volume. For some this may not seem like a big deal, but for others this could very well be like looking into a crystal ball and seeing the future. You see, on many fronts this information shows that more and more consumers are moving away from their credit cards and opting to use a debit card instead. While the reasons behind the switch may vary, one thing is for sure; debit will become more and more important to credit card issuers and consumers alike.

As this increase of debit card usage grows, so does the issuers need to have consumers choose their card over their competitors. As you may have already seen, more and more incentives are being advertised or promoted by organizations such as MasterCard and Visa. Some such as cash back for your banking debit card, or rewards for spending over a certain amount on your debit card for the year are gaining popularity among consumers. The reason being that consumers still get great benefits without creating debt on product or services that are normally purchased day to day.

In my opinion if this trend continues to grow, many consumers will start to see more credit card issuers enter into the debit card space. We have already seen some issuers enter into the prepaid card space and target consumer that were omitted in the past.

Do you currently use a debit card more than a credit card? If so, why?