Small purchases come up big for debit

Small debit card purchases played a big role in boosting debit card transactions last year, Pulse, a Houston-based electronic funds transfer network, reported in its 2010 Debit Issuer Study.

Surveyed issuers reported overall debit transaction growth of 10 percent between 2008 and 2009, probably because of the recession. Last year, 58 percent of all debit card transactions were less than $20, the survey found.

"The debit market has continued to weather the economic storm as a result of consumer preference for debit and increasing merchant acceptance of small-ticket debit transactions," Cindy Ballard, Pulse executive vice president, said in a statement. "As consumers scaled back spending during the recession, they embraced (the) pay-as-you go approach and are keeping their debit card top of the wallet."

The study, released June 14, also found PIN-debit transactions outpaced signature debit transactions. Between 2008 and 2009, the use of PIN debit grew 13 percent with an average ticket-purchase price of $41 compared with signature debit, which increased nine percent with an average ticket-purchase price of $35.

Oliver Wyman, an international management company based in New York, conducted the survey for Pulse, which is owned by Discover Financial Services. Oliver Wyman polled 64 financial institutions that issue 78.7 million debit cards and operate 42,063 ATMs.