Debit card issuers expect usage growth in spite of the crisis

According to the commissioned by PULSE The 2009 Debit Issuer Study, some positive trends for financial institution debit card issuers have been figured out, including sustained debit transaction growth despite the world economic crisis. The study also found that PIN debit use grew, while fraud loss rates decreased. 

During the second half of 2008 the volume of debit transactions increased by 8% , as for the results of the research, the led to 15 % growth in PIN debit transactions and 4% growth in signature debit. The participants of the survey expect 7% increase each for for PIN and signature debit in 2009. 

 The 2009 Debit Issuer Study also showed that about 27% of all debit transactions in 2008 were for less than $10. Debit card penetration remained at 73%, the number of issued cards used actively in 2008 made up 66%. 

PIN debit accounted for 35% of debit transactions in 2008, that is slightly up from 34.2% in 2007. The average debit transaction value was $42 for PIN debit and $37 for signature. Both figures fell by about $1 compared to the previous study results. Additionally, active debit cardholders performed 17.3 point-of-sale transactions per month, on average, compared to 16.6 transactions per month in the 2008. 

In all the categories debit card fraud losses at the point of use dropped as well. PIN point-of-sale losses fell to $0.15 from $0.19. ATM losses also moved down to $0.56 per card per year from $0.61, and signature debit loss rates fell to $1.81 from $1.92. Despite losses at all three usage points declined year-over-year, The 2009 Debit Issuer Study reported an increase in share for ATM losses, to 38% of total debit fraud losses in 2008 from 25% in 2007.