Report: Debit card use on the rise

According to a report from ABC News, debit card use is reaching new highs in the United States.

For the first time ever, MasterCard's U.S. customers spent as much with their debit cards ($118 billion) as they did with their credit cards in the last fiscal quarter. Visa's first quarter debit card volume was $320 in billion in the U.S. Visa's debit card volume first exceeded its credit card volume in December 2008.

"It's a sign of the times," saidTim Murphy, group executive of core products at MasterCard. "Consumers are concerned about their financial future, even with some indications of some (economic) green shoots, people are spending sensibly, saving more and that, I think, is an important driver of debit spending."

Other reasons are also cited for the rise of debit cards. Customers enjoy the convenience of not having to carry around cash. Banks have suffered losses in their credit card portfolios and recent credit card reform rules have made credit cards harder to get than debit cards.

(Photo by The Consumerist)