Cardholders choose debit over credit

Consumers increasing aversion towards credit cards continues to be a feature of the monthly data on payment cards published by the Reserve Bank of Australia.

Over the six months to April 2010, purchases with debit cards gained 130 basis points in the share of the value of payment card purchases from credit and charge card, Mike Ebstein, of MWE Consulting, noted in his monthly analysis of payments data.

A related indicator of the aversion toward credit cards is the decline in the use of cash advances. Personal credit card cash advances fell below $10 billion over the year to April 2011, according to MWE.

The average cash advance per account at $730 is down by six per cent over one year and 21 per cent over three years.

Source: Banking Day