Debit Usage Collapses At Visa As Consumers Shift Back To Credit

Visa, MasterCard, credit card

Photo: Flickr / orphanjones

Visa offered some disappointing data on payment trends this morning in a new 8-K filed with the SEC.The key takeaway: debit transactions collapsed as consumers shifted to credit.

From the release (emphasis added):

For the month of April 2012, U.S. aggregate payments volume growth was negative 3% versus U.S. aggregate payments volume for the prior year period. Further broken down, U.S. credit payments volume growth was positive 8% and debit payments volume growth was negative 12%. Cross border volume growth on a constant dollar basis was positive 13% globally over the prior year period. Processed transactions growth was negative 1% globally.

Through May 28, 2012, U.S. aggregate payments volume growth was 0% versus U.S. aggregate payments volume for the prior year period. Further broken down, U.S. credit payments volume growth was positive 10% and debit payments volume growth was negative 8%. Cross border volume growth on a constant dollar basis was positive 13% globally over the prior year period. Processed transactions growth was positive 1% globally.

Visa shares were nearly two per cent lower in pre-market trading.

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