The struggling economy and the credit card mess has been a windfall for debit cards as more Americans seek the convenience of debit cards over the hassle of credit cards. At mid-year the amount charged on debit Visa debit cards was up 6% compared to a 15% decline in the amount charged on Visa credit cards. For the same period, MasterCard debit cards were also up 4% while MasterCard credit cards were down 19%. Over the past five years, the debit card gross dollar volume compound annual growth rate is 17%, compared to a 4.5% credit card gross dollar volume compound annual growth, according to CardData.com. Translated this means debit cards are growing more than three times faster than credit cards. Visa and MasterCard have a combined 479 debit cards in use today in the USA as of June 30th, 2009.
U.S. DEBIT VOLUME (Visa & MasterCard) 2Q/08: $387 billion 3Q/08: $386 billion 4Q/08: $378 billion 1Q/09: $382 billion 2Q/09: $408 billion Source: CardData (www.carddata.com)