Checks, Cash Being Beaten To a POS By Debitcards

Written by Evan Schuman
November 13th, 2006

Pity the poor greenback. The National Retail Federation released the results today of its annual holiday shopping survey and neither cash nor checks fared well, having been beaten to a POS by debit cards and check cards.

Those debit/checkcards did their magstrip-tease to the tune of 39.1 percent of all expected consumer purchases, up from 34.3 percent last year. Presidential portraits got the Mr. Bill treatment (terrible play-on-words intended), dropping to 24.3 percent from 28.5 percent last year. Checks dropped sharply to 6.2 percent from 9.1 percent last year.The online survey of 8,090 consumers was conducted Nov. 1-8, with a margin of error of +/- one percent.

Although credit cards are faring poorly compared with debit cards, they’ve actually gained a bit this year, ringing in at 30.5 percent compared with last year’s 28.2 percent and even compared with 2004’s 29.5 percent. Why the slight resurgence for credit cards? “This time of year, people need an option how to finance purchases,” said Phil Rist, VP/Strategy for BigResearch, who did the research study for NRF. “They want to have the option of spreading the payments over time.”


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Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
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