Online Shoppers Favor Debit Cards Over Credit Cards
Online Shoppers Favor Debit Cards Over Credit Cards
In the first half of 2005, online shoppers completed transactions with debit cards more often than with credit cards. In addition, debit card transactions increased thirty eight percent in 2005 in comparison to the previous year. This trend would seem to indicate that consumers are gaining confidence in online retailers and are comfortable using available funds for online purchases. Studies have shown that in past years consumers have had concerns about making online purchases with debit cards due to the possibility of unauthorized use.
In 2001, the debut of Verified By Visa began to pave the way for confident use of debit cards in online transactions. Since that time many banks have begun issuing debit cards that offer consumers protection from fraud and unauthorized use. The increasing use of debit cards is not limited to online transactions. Reports indicate that consumers use debit cards rather than credit cards for all types of purchases, and that debit cards have almost completely replaced purchases previously made with cash or checks. The reasons for this increased use of debit cards could be due to high interest rates on credit card purchases, consumer's desire to eliminate credit card debt, and the avoidance of carrying large amounts of cash.
In the first half of 2005, online shoppers completed transactions with debit cards more often than with credit cards. In addition, debit card transactions increased thirty eight percent in 2005 in comparison to the previous year. This trend would seem to indicate that consumers are gaining confidence in online retailers and are comfortable using available funds for online purchases. Studies have shown that in past years consumers have had concerns about making online purchases with debit cards due to the possibility of unauthorized use.
In 2001, the debut of Verified By Visa began to pave the way for confident use of debit cards in online transactions. Since that time many banks have begun issuing debit cards that offer consumers protection from fraud and unauthorized use. The increasing use of debit cards is not limited to online transactions. Reports indicate that consumers use debit cards rather than credit cards for all types of purchases, and that debit cards have almost completely replaced purchases previously made with cash or checks. The reasons for this increased use of debit cards could be due to high interest rates on credit card purchases, consumer's desire to eliminate credit card debt, and the avoidance of carrying large amounts of cash.
