NEW YORK—Despite the rise in credit card usage this year, a new report indicates debit card spending will be most glittery this holiday season.
A survey by the National Retail Federation of more than 7,000 shoppers found that 43% of shoppers plan to primarily use debit cards to make holiday purchases, the largest share since 2013.
Meanwhile, 38% of respondents said they'll primarily use credit cards, the smallest share since 2015. The remaining shoppers planned to make purchases using cash or by writing checks, USA Today stated in its analysis.
A TD Bank survey of more than 1,000 Americans' holiday shopping habits suggested that the gap between people primarily making purchases with debit cards over credit cards could be even wider: 42% of respondents said they planned to use debit cards and 33% credit cards, USA Today noted.
Income Plays Role
“So far, that's not showing up in Bank of America's spending data for November, which doesn't separate out holiday-related spending from all the spending that occurred,” the report states. “While consumers earning less than $50,000 a year primarily used debit cards last month, there isn't a significant difference in usage rates compared to the last two years, according to a Bank of America Institute report. And consumers earning more than that primarily paid for goods and services with credit cards.”
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