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09/12/2009 -
Many payment processing industry players worry that the increase in debit card use, as seen in recent studies, comes at the expense of credit card use.However, while credit card use has declined in the face of the recession and credit crunch, it is not due to the rise in debit, industry experts say.
U.S.-based National Public Radio reported this week that consumer attitudes toward electronic payment processing are shifting, so that credit cards are mainly being used for big-ticket items and debit cards are being used for smaller, everyday purchases.
What's really happening, then, is that debit cards are taking the place of cash and checks, NPR reported.
An example of this trend in consumer behavior can be seen in the implementation of POS terminals in New York City taxi cabs, which actually increased taxi cab revenue because consumers found the electronic payment processing more convenient. Experts say that these small purchases are fueling the rise in debit card use.
This trend points to the importance of having both credit card and debit card acceptance as part of a company's merchant services, as consumers seem to be varying the payment method used based on the type of purchase.
