Australian Consumers Are Spending More On Debit Cards

The Reserve Bank mused late last week that credit cards in Australia could head the way of cheques as more and more consumers are switching to debit cards in order to curb credit card debt.

A Parliament tabled report showed that debit card transactions rose a staggering 14.7 per cent in 2008-09 in contracts with 3.8 per cent for debit cards.

During the year an average of 86 debit transactions were shown, 66 credit card transactions and only 16 cheques.

A third of all non-cash payments featured a debit card and 24 per cent of consumers used credit cards for the same.

It seems that many of us are favouring a debit card as a replacement to cash for smaller purchases. The average value for a credit card transaction was $145 and for debit cards $69.

Cheques on the other hand seem to be on the way out. They are less and less involved in the way we do business. The number of cheques used fell by 9.9 per cent in 2008-09, with a value dropped of 15.2 per cent.

The dominance of the debit card could be attributed to being able to access economic stimulus payments.

Source: News.com.au

Comparison of our Top Credit Card Offers

		Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual Fee	Cash Advance Rate (p.a.)
Citibank Clear Platinum Card	A low interest rate offer on balance transfers and purchases	11.99%	2.9% for 12 months	$99	21.74%
St George Vertigo	An introductory offer on balance transfer and a low annual fee	13.24%	0.99% for 12 months	$55	21.49%
Virgin Flyer Credit Card	Earn 1 velocity point per $1 spent, plus an introductory offer on balance transfers	20.99%	1.9% for 9 months	$99	20.99%
Westpac 55 Day Credit Card	No annul fee for the first year with a low rate on balance transfers and purchases	0% for 5 months (reverts to 19.59% )	3.99% for 6 months	$0	21.49%
ANZ Frequent Flyer	An exclusive bonus points offer, Plus extended warranty, overseas travel and medical insurance,90 day purchase security insurance.	19.74%		$95	20.99%