Credit Cards Being Used Like Cheques

The Reserve bank announced on Wednesday that credit cards could be heading the same way as cheques because shoppers are switching to debit cards.

Credit card transactions rose by 3.8 per cent in 2008-09 but use of debit cards rose by 14.7 per cent a recent report showed.

For every Australian there were 86 debit transactions and 66 credit transactions, but only 16 cheques.

Out of all non-cash transactions debit cards featured in one third, compared to 24 per cent involving credit cards.

Consumers were using debit cards mainly in place of cash for small purchases. The average value of a debit card deal was $69 compared to $145 for a credit card.

Cheques were proving to be less popular and usage fell by 9.9 per cent in 2008-09.

The reason for debit cards being so popular is because it is the best way to access economic stimulus payments.

Published on October 10-rd, 2009 in Credit Cards
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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