Australians are increasingly shifting away from credit cards and using debit cards for their spending instead as they seek to cut down on their expenses.
According to a news report in the Sydney Morning Herald, purchases made using debit card rose by 25.8 per cent year on year, representing the fastest growth rate ever recorded.
Fraud perpetrated on Australian credit and debit cards rose to $183 million over the last financial year, from $167 million in the previous financial year according to new data from the Australian Payments Clearing Association (APCA).
The biggest increase occurred in fraud perpetrated on proprietary or brand name credit cards, where PIN’s were also compromised, leaping from $18 million in the 2008 to 2009 financial year, to $27.5 million in the current financial year.
The Australian central bank, The Reserve bank of Australia (RBA) says it remains a “reluctant regulator” of competition in the electronic card payments system space.
The RBA says it prefers competition as the mechanism used to contain fees, and would prefer to take a step back instead, however RBA assistant governor Malcolm Edey says it is not quite ready to do so.
Australian consumers are increasingly transitioning away from credit cards and into debit cards instead, as concerns over personal finance become more acute, and major lenders engaged in a big marketing push.