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Looking for Check Card Growth Stats

Where can I find statistics on the growing number of people using check cards/offline debit? Specifically, what percentage of the time is a merchant going to see these types of transactions as opposed to credit card transactions?

John
MetroATM@yahoo.com

John,

The credit card associations, MasterCard and Visa, recently reported growth in usage of their branded debit cards, and two recent studies focusing on the use of debit cards have also been published.

MasterCard said development in both its credit and debit card programs fueled its growth in 2003. At the end of 2003, the number of debit MasterCard-branded cards issued in the United States rose 10.6% to 53.4 million.

MasterCard's growth in 2003 gross dollar volume (GDV) for worldwide offline debit programs rose 9.3% to $236.9 billion during 2003. (Source: MasterCard International www.mastercardintl.com/cgi-bin/newsroom.cgi?id=826 )

Visa U.S.A. reported that over the last decade, debit cards have become an increasingly significant driver of volume growth. In 2003, debit represented 41% of Visa volume, and 59% of total Visa transactions. Visa check card volume grew 19.5% to $454 billion. By comparison, in 1993 Visa check cards represented just 6% of total Visa volume and only 8% of total transactions. (Source: Visa U.S.A. www.usa.visa.com/personal/newsroom/press_releases/nr197.html )

According to a study conducted by Edgar, Dunn & Co. (EDC), a strategy and consulting firm, debit cards were consumers' most preferred cards in their wallets-beating out any single type of credit card. The study is titled "PaymentDynamics 2004 Preferred Card Study" and data were compiled from a national sample of more than 6,500 card owners and credit card decision makers.

The survey also showed that more than half of consumers have a debit or credit card today that wasn't in their wallet a year ago-the number of cards in the wallet increased to 4.3 in 2003, up from 3.3 in 1999. In addition:

  • 38% of consumers in 2003 said they prefer using their debit card for purchases
  • Almost 40% of consumers reported canceling or reducing the use of an average of nearly two payment cards
  • Six out of 10 consumers have chosen rewards-based cards as their preferred credit card

For more information about the study, visit: www.edgardunn.com.

Another study, "The U.S. Market for Debit Cards," a new market research report by publisher Packaged Facts, found that debit card usage in the United States has quadrupled since 1995. From 1995 to 2000, the debit card's average compound annual growth rate (CAGR) was 42%, compared to the 14.6% growth in electronic payments overall, and better than the 9.5% growth of credit cards. In 2003, Americans made 10.47 billion transactions using their debit, or, 'check' cards.

Prior to 1995, fewer than 2% of U.S. consumers used any form of debit card, but, according to Packaged Facts, four primary trends emerged that contributed to rapid growth in the market:

  1. Technological advances, such as national ATM networks
  2. Tech-savvy Americans who are comfortable with using ATM cards and PINs
  3. Education of U.S. consumers by the banking industry about the ease of debit card usage
  4. Selling Americans on the convenience of the cards.

This report is available for purchase at www.packagedfacts.com/pub/921748.html.

Editor

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