BOSTON—Debit card usage is on the decline, and the increase in online shopping and a lack of debit rewards are two of the main reasons, a new report reveals.
The number of consumers who use debit cards for purchases has declined steadily since 2011, the year following enactment of the Durbin Amendment, and now stands at 54%, according to a newly released report from Mercator Advisory Group.
This is in spite of high consumer ownership of debit cards and the increasing likelihood that a consumer who opens a checking account will receive a debit card for that account, notes ATM Marketplace in its analysis.
Only half of debit card users reported using their card for online purchases, according to the Mercator study.
“Their main reasons for not using debit cards online: 41% had a perception of greater online security with credit cards; 30% had a fear of checking account compromise; and 30% due to the lack of debit card rewards,” ATM Marketplace explained.