Thursday, August 3, 2017

Why Credit Cards Are So Popular

MoneyTips

Americans seem to love credit cards – so much so that credit cards have claimed the top spot as the preferred American method of payment. The 2016 U.S. Payment Study conducted by Total Systems Services (TSYS), a Georgia-based payment processing company, found that credit cards were the preferred payment method for Americans, edging out debit cards for the first time in the six-year history of the study.

Use of debit cards has been on a steady decline in preference, falling from 48% in 2013 to 35% in 2016, while credit card preference has been on the rise (from 33% in 2013 to 40% in 2016). Cash has stayed relatively constant over that time period, remaining between 9% and 11%.

Why have credit cards claimed the top spot? The TSYS survey breaks down the data and suggests reasons for the switch, including an unintended consequence of government policy.

Consumers are being drawn to credit cards because of the increased variety and volume of

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