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.
