Astounding Credit Card Statistics, Vol. 7

Welcome to the volume seven of our continuing series, Astounding Credit Card Statistics. In this volume, you’ll learn a few stats on recent credit card payment trends, and better understand how and why certain consumers pay via different methods. Armed with a superior knowledge of your consumers, how they pay, and the demographics of your customer base, you’ll be extensively prepared to deal with unforeseen credit card issues – and to maintain a loyal base of customers!

Payment Trends

  • About 6 percent of consumers have used a prepaid card in the past months. About 9 percent have used one in the past year. (Source: “The Survey of Consumer Payment Choice,” Federal Reserve Bank of Boston, January 2010)
  • About 69 percent of consumers have used a credit card in the last month. About 73 percent have used one in the past year. (Source: “The Survey of Consumer Payment Choice,” Federal Reserve Bank of Boston, January 2010)
  • About 56 percent of consumers carried an unpaid balance in the past 12 months. (Source: “The Survey of Consumer Payment Choice,” Federal Reserve Bank of Boston, January 2010)
  • About 45 percent of consumers said their unpaid credit card balance had gotten “lower” or “much lower” in the past 12 months. Only 26 percent said it had gotten “higher” or “much higher.” (Source: “The Survey of Consumer Payment Choice,” Federal Reserve Bank of Boston, January 2010)
  • “More consumers now have debit cards than credit cards, and consumers use debit cards more often than cash, credit cards, or checks individually.” (Source: “The Survey of Consumer Payment Choice,” Federal Reserve Bank of Boston, January 2010)
  • Nearly one in three Americans — 29 percent — said that in some of the past 12 months, they paid only the minimum payment on their credit cards. (Source: “Financial Capability in the United States,” FINRA Investor Education Foundation, December 2009)
  • More than half of Americans — 54 percent — said that in the past 12 months, they always paid their credit cards in full. (Source: “Financial Capability in the United States,” FINRA Investor Education Foundation, December 2009)
  • 41 percent of cardholders from the ages of 18 to 29 made only the minimum required payment on a credit card in some of the past 12 months. (Source: “Financial Capability in the United States,” FINRA Investor Education Foundation, December 2009)
  • Three in four cardholders age 60 or older always paid their credit card in full in the past 12 months. (Source: “Financial Capability in the United States,” FINRA Investor Education Foundation, December 2009)
  • 26 percent of Americans, or more than 58 million adults, admit to not paying all of their bills on time. Among African-Americans, this number is at 51 percent.  (Source: National Foundation for Credit Counseling, 2009 Financial Literacy Survey, April 2009)
  • The average credit card-indebted family in 2004 allocated 21 percent of its income to servicing monthly debt compared to the 13 percent dedicated to debt payments among all households. (Source: Demos.org, “Borrowing To Make Ends Meet,” November 2007)
58 percent of Hispanics have not used a credit card in the past 30 days. (Source: Experian Consumer Research study, November 2008)
  • When finances are tight, 59 percent of people would pay their credit card bills last. A majority — 52 percent — would pay the mortgage first and 38 percent say they would pay for utilities before paying other obligations. (Source: CreditCards.com survey, December 2008)

 

Vision Payment Solutions wishes you a happy, healthy, and profitable holiday season! For any credit card-processing needs – be they hardware, software, integrated solutions, or technical support – VPS is there to help you find the perfect answer to any processing scenarios you may have!

2�< �� x�� Normal style=’margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo1′>•        Visa debit: $1.05 trillion (Source: Visa)

 

Issuer Transaction Volume
(through year-end 2010)

  • American Express: Unavailable
  • Discover cards: Unavailable
  • MasterCard credit: 5.85 billion (Source: MasterCard)
  • MasterCard debit: 8.46 billion (Source: MasterCard)
  • Visa credit: 9.4 billion (Source: Visa)
  • Visa debit: 28.6 billion (Source: Visa)

Other:

  • Today, credit cards are responsible for more than $2.5 trillion in transactions a year and are accepted at more than 24 million locations in more than 200 countries and territories. (Source: American Bankers Association, March 2009)
  • Between 1989 and 2006, the nation’s total credit card charges increased from about $69 billion a year to more than $1.8 trillion. (Source: Demos.org, April 2008)
  • It is estimated that there are 10,000 payment card transactions made every second around the world. (Source: American Bankers Association, March 2009)

Vision Payment Solutions is your one-stop shopping experience for all card-processing needs; from hardware and software to superior technical support, VPS has all your credit card bases covered! Call us today!