Big buys go on our credit cards, little ones on prepaid cards
By Juan Rodriguez and Laura Mohammad | Published: September 2, 2014
Americans are more likely to use credit cards for bigger charges and prepaid cards for smaller purchases, according to a 2013 report by the Federal Reserve System.
In the study, which looked at card and banking trends in the U.S., it was found that more than a third of Americans used their credit cards for purchases of $50 or more, the most frequently used denomination for credit cards. Least common were smaller denominations. Only 9 percent used their credit cards for denominations of less than $5.
In contrast, prepaid cards were more likely to be used for denominations of under $5 (20 percent), compared to $50 or more 16 percent of the time.
This study corresponds with a poll conducted by CreditCards.com, which found that one in three people use a credit or debit card for items less than $5 for in-person purchases.
A sample of 1,182 financial institutions participated, with a margin of error of less than plus or minus 5 percent. Surveys were collected between January and May 2013 by mail, fax, email and online.
To use the graphic on your site, use the following code:
- Credit card issuer complaints rose 20 percent in 2016 – Complaints about credit cards rose by 20 percent in 2016, according to the Consumer Financial Protection Bureau, along with a surge of dissatisfaction with reward programs. American Express, Barclays PLC and Citibank topped the gripes list ...
- Infographic: Card market continues climb but subprime still in hole – Americans now have more cards open than at the end of 2008 ...
- Young consumers most cautious about online payments – A survey shows that showing that young consumers are the most cautious when paying for their purchases ...