ST. PETERSBURG, Fla.-One card usage not expected to decline is that of debit cards, said Tom Gandre, chief debit officer for PSCU Financial Services in St. Petersburg, Fla.
"Overall, debit card usage has been fairly strong continues to grow," he said. "We wouldn't expect any dramatic dip in debit card usage."
This is mainly because the majority of debit card use is for staple items, and is mainly seen used in grocery stories, gas stations and convenience stores, Gandre noted. Also, debit cards are easy to use and help consumers avoid fees.
"Consumers use debit cards in lieu of cash and checks," he said. "Debit cards are typically used for staples. When consumer spending dies down, people still buy the staples."
The only factor that has brought debit card usage down in recent months was that less people were purchasing gasoline due to the rise in fuel costs, Gandre said.
Gandre said that PSCU has grown about 20% in debit for the year.
"If the economy was good, we would have slightly better growth rates," he noted. "The slowing economy does have some impact on debit card usage, but not nearly as significant as others."
