How many debit cards are there

Published by Raynor de Best , Aug 27, The prevalence of debit card usage has continued on its trajectory of growth, reflected by the increasing spread of ownership in the United States. In recent years the use of debit cards has become so widespread that their volume has all but overtaken cheques and, to some extent, the use of physical cash as a payment method. Many debit cards belong to the Visa or MasterCard brand but there are many other that exist only within particularly countries or regions.

In recent years, new security measures such as EMV technology have appeared in debit cards. Prepaid debit card use is also increasing. Debit cards are popular for a variety of reasons, including ease of keeping track of expenses, better management of the budget and lack of interests like in case of credit cards.

Such preferences indicate that debit cards will remain relevant. This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.

Share of Americans who used a debit card recently. Share of U. Millennials who use debit cards because it's easier to keep track of expenses. Usage in the U. Share of married couples using prepaid debit cards in the U.

List of Partners vendors. Credit cards and debit cards typically look almost identical, with digit card numbers, expiration dates, and magnetic strips and EMV chips. Both can make it easy and convenient to make purchases in stores or online, with one key difference.

Debit cards allow you to spend money by drawing on funds you have deposited at the bank. Credit cards allow you to borrow money from the card issuer up to a certain limit in order to purchase items or withdraw cash. You probably have at least one credit card and one debit card in your wallet. The convenience and protection they offer are hard to beat, but they have important differences that could substantially affect your pocketbook.

A credit card is a card issued by a financial institution, typically a bank, and it enables the cardholder to borrow funds from that institution. Credit cards are issued in the following variety of categories:. Credit card users can reap cash, discounts, travel points, and many other perks unavailable to debit card holders by using rewards cards.

Rewards can be applied on a flat-rate basis or at tiered rates. For example, you might have a card that offers unlimited two miles per dollar on purchases and another that offers three miles per dollar for travel spending, two miles per dollar for dining, and one mile per dollar for everything else.

You could then use miles earned to book future travel arrangements. When choosing rewards cards, pay attention to whether rewards can expire and what options you have for redeeming them. Credit cards can offer certain advantages over debit cards, though they can also have some downsides. Credit card use is reflected on your credit report. That includes positive history, such as on-time payments and low credit utilization ratios , as well as negative items such as late payments or delinquencies.

Your credit report information is then used to calculate your credit scores. Responsible spenders can raise their scores with a history of expenditures and timely payments and by keeping their card balances low relative to their card limits. Many credit card companies offer free credit score monitoring and tracking as a card perk, so you can keep an eye on your progress when building credit. Some credit cards may also provide additional warranties or insurance on purchased items that go beyond those the retailer or brand is offering.

Or you may have purchase and price protection built in to help you replace items that are stolen or lost, or refund price differences when the item you purchased is sold elsewhere for less.

Credit cards offer much greater protection than debit cards in most cases. The Electronic Fund Transfer Act gives debit card customers the same protection from loss or theft—but only if the customer reports it within 48 hours of discovery.

The Fair Credit Billing Act allows credit card users to dispute unauthorized purchases or purchases of goods that are damaged or lost during shipping. If the item was bought with a debit card, the charge cannot be reversed unless the merchant is willing to do so. Though some credit and debit card providers offer zero liability protection to their customers, the law is much more forgiving for credit card holders.

If you need to rent a car, many credit cards provide some sort of waiver for collisions. Even if you want to use a debit card, many car rental agencies require customers to provide credit card information as a backup. The only way out for a customer may be allowing the rental agency to put a hold of perhaps a few hundred dollars on a bank account debit card as a form of surety deposit. The main drawbacks of using credit cards involve debt, credit score impacts, and cost.

This money has to be repaid, with interest. Racking up high balances on multiple cards could make it difficult to keep up with monthly payments and strain your budget.

Paying your bill on time and keeping balances on credit cards low can help your FICO scores. However, misusing credit cards could hurt your credit history if you get into the habit of paying late, max out one or more of your cards, close down older accounts, or apply for new credit too often. Set up credit card alerts to notify you of payment due dates and card balances, so you can pay on time and avoid maxing out your credit limit.

The interest rate and the fees the credit company charges are used to calculate your annual percentage rate APR. You should be aware of whether your card charges an annual fee, a foreign transaction fee, a balance transfer fee, a cash advance fee, a late payment fee, or a returned payment fee. However, while both cards can allow you to withdraw cash, usually only a debit card has a Visa or Mastercard log allowing it to be used to purchase goods and services.

An ATM card can only be used to withdraw funds from your account. A credit card is a debt instrument for financial transactions instead of cash or a check or a debit card.

Depending on its owner's creditworthiness, a credit card may have a high spending limit or a lower one. When you use a credit card, the purchase amount is automatically added to your outstanding balance.

With most credit card companies, a customer has 30 days to pay before interest is charged on the outstanding balance, though in some cases, interest starts accruing right away. Responsible credit card users can often earn points and rewards from card issuers, and using credit in a positive manner helps build and maintain a strong credit score.

Interest rates on credit cards can be notoriously high; they are a chief way credit card companies make money.

Savvy consumers can avoid paying it by settling their balance in full each month. When you use a debit card, the money is automatically taken out of your checking account. When you use a credit card, you pay the bill later. You can't use your debit card if your bank account is empty, but you can use a credit card. Besides, credit cards can help you build up your credit or hurt it. A debit card is simply a tool to use in place of a check or actual cash.

You are borrowing money when you use a credit card. When you use a debit card, you are using your funds. There isn't necessarily a better card to use. Using credit versus using a debit card, which is essentially cash, depends on how you want to spend and manage your money. However, if someone steals your debit card and takes funds out of your account, it may be more difficult and take longer to get the funds back than if someone steals your credit card. In that case, you can report the card stolen, and your liability is limited.

One uses a standard debit card, and the other uses a credit card. The debit card customer swipes their card. Over the next one to three days, the store sends the transaction details to the bank, which electronically transfers the funds owed to the store. The other customer uses a traditional credit card.

When they swipe it, the credit card company automatically adds the purchase price to their card account's outstanding balance. The credit-card using customer has until their next billing due date to reimburse the company by paying some or all of the amount shown on their statement. However, the distinction between debt and non-debt instruments becomes blurred if a debit card user decides to implement overdraft protection.

In this case, whenever a person withdraws more money than is available in their account, the bank pays the outstanding amount. The bank account holder is then obligated to repay the account balance owed and any interest charges that apply to overdraft protection. Overdraft protection is designed to prevent embarrassing situations, such as bounced checks or declined debit transactions.

However, this protection does not come cheaply; the interest rates charged by banks for using overdraft protection are as high, if not higher, than the ones associated with credit cards. Therefore, using a debit card with overdraft protection can result in debt-like consequences. The main difference between the two cards is the question, "Do you want to pay now or later? A credit card can be used to immediately pay for goods and services, but you pay for them when your monthly billing cycle is due.

Each card has its own uses and benefits depending on the individual. For example, you may want to consider a credit card for larger purchases, but only if you know, you can pay your bill on time. If you need cash, it is less expensive overall to use your debit card rather than take out a cash advance on your credit card. When you pay with cash, you don't go into debt, which is a risk when you use a credit card.

Credit cards are useful in an emergency at home and abroad. If you have a line of credit at your disposal, you can make an emergency payment without worrying about the money going out of your bank account. Besides, most car rental companies, hotels, and resorts will only accept a credit card on file versus a debit card when you travel.

If you want to build up your credit history, it makes sense to use your card responsibly. Likewise, if your card comes with a rewards program, you may want to use your credit card to earn these benefits. While some debit cards may offer rewards, most don't, and your debit card doesn't improve your credit history.

In most cases, yes. If someone steals your debit card, they have direct access to the cash in your accounts. If someone steals your credit card, you don't lose actual money from your checking or savings account. Banks will freeze your account when you report a card stolen, but you will have more liability than if your credit card is stolen or used.