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The Debit Boom - Dove Statistic Report
While debit cardholders may have some confusion about how to best use their cards, it hasn't slowed down their usage which is growing at 35% compounded annually.
Where You Use Your Debit
Grocery stores are the most popular place to use a debit card, accounting for almost one out of every four transactions. But when consumers swipe their cards, three times as many punch in a PIN number.
| Business Type |
PIN-based |
Signature-based |
Cash |
Check |
Credit |
| Grocery Store |
17% |
6% |
37% |
25% |
15% |
| Discount Store |
10% |
6% |
35% |
26% |
22% |
| Drug Store |
10% |
6% |
42% |
23% |
18% |
| Convenience Store |
10% |
6% |
43% |
7% |
33% |
| Department Store |
8% |
8% |
28% |
20% |
36% |
| Restaurant |
4% |
9% |
54% |
6% |
27% |
| Fast Food |
2% |
1% |
92% |
2% |
3% |
| Source: Dove Consulting
Three years ago, cash was king, used in 39% of all purchases, while credit and debit cards accounted for 22% and 21%, respectively, according to Dove Consulting. By last year, debit-card usage had surged, eating away at both cash and credit's share as a type of payment. In 2001, Dove statistics show debit accounted for 26% of all purchases, while cash's share shrunk to 33%.
"Debit cards are the fastest-growing consumer product in the history of Visa," says Stacey Pinkerd, senior vice president at Visa. "Over 115 million people carry a Visa-branded debit card, with 60 million to 70 million using it every month."
Consistent with previous Star surveys, conducted annually, 51 percent of consumers prefer PIN-secured debit payment, versus 28 percent who prefer signature transactions.
More than four out of five U.S. accountholders (82 percent) have an ATM/debit card, and 86 percent of users made a card purchase in the past 30 days. ATM/debit card usage is relatively consistent across regions in the U.S., according to the survey.
Source: Dove Consulting
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