News

Consumers increase card spending in July

August 12, 2013

Payment processing provider First Data Corp. has issued its First Data SpendTrend analysis for July 2–30 compared with July 3–31 of last year. Year over year, prepaid achieved the largest jump in growth at 11.5 percent.

Overall dollar volume grew by 7.7 percent — a 12-month high and an uptick from a 7.1 percent increase in June. Rising gas prices were a key contributor to growth. 

Overall transaction growth of 6.5 percent reached a 10-month high aided by the long Independence Day weekend and warm, dry weather across much of the country.

Average ticket growth of 1.1 percent marked a slight uptick compared to June's rate of 1.0 percent, driven by an increase in average tickets at gas stations and hotel and travel merchants.

"[C]onsumer spending remains healthy, and the recent pickup in employment, together with a strong housing recovery and stock market gains, should encourage more spending during the ever-important back-to-school shopping season," said Krish Mantripragada, SVP of information and analytics solutions at First Data. "Credit dollar volume growth continues to lead PIN and signature debit growth even though PIN debit growth spiked due to higher gas prices."

SpendTrend tracks same-store consumer spending by credit, signature debit, PIN debit, EBT, closed-loop prepaid cards and checks at U.S. merchant locations.

Read more about trends and statistics.