Consumer Payment Card News

Purchase Perceptions

A new study has found that, perceptually, credit cards are viewed as the exact opposite to cash. They are most closely associated with security and well suited for large purchases. But, credit cards are thought to make it too easy to spend money, lack privacy and are not particularly fast to use. The in depth survey of consumer behavior by VISA found that checks’ only real strength lies in its usefulness for record keeping. The research also found that debit cards lack a clearly defined image and there is still confusion about how debit cards work. VISA found that credit cards, cash, checks and debit cards are not only perceived differently, these differences are also reflected in actual behaviors. In general, the form of payment people choose for any given purchase occasion is determined largely by purchase amount, with cash and credit cards at opposite extremes. Credit cards tend to be used regularly for larger purchases over $100. On the other hand, cash is used regularly for smaller purchases below $25. Checks and debit cards are used most often for purchases in the middle range of $25-$100.

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