Bank / Credit Union

PSCU reports debit spend is up, credit spend is down

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June 26, 2020

Consumer credit card spending was down 6.7% year-over-year, impacted by the coronavirus pandemic, but consumer debit card spending was up nearly 13% year-over-year for the ninth consecutive week, according to PSCU, the largest credit union service organization in the U.S.

Florida-based PSCU released the figures in its June 14th weekly transaction snapshot that compared the week ending June 14 with the same period last year, according to a report in the Credit Union Times.

"Debit spend was once again the leader this week, continuing at a growth level not seen since the COVID-19 buying spree in early March," Glynn Frechette, SVP of Advisors Plus at PSCU, said in the report. "The ongoing strength in debit was again fueled by strong growth in retail goods, including electronics, home, discount stores and automotive. Credit card spend and transactions, while still negative year-over-year, both continued to improve, marking the 11th straight week of improvement for transactions."

Debit transactions are down 1.2% year-over-year, according to the report and credit transactions are down 11.4%.

PSCU reported that ATM cash withdrawals continue to drop substantially, and during the week of June 14, ATM withdrawals were approximately 24% down compared to the same week last year.

Many cities and states are beginning to lift restrictions imposed at the start of the pandemic. In the eight states that did not issue formal "stay at home orders" PSCU's report said debit spend was up by about 11% and credit spend was down by 6%.

Consumers are continuing to spend substantially on groceries, electronics and products for the home. Grocery purchases were up 8.1% for debit and 9.8% for credit, according to the latest trends report.