AUSTIN, Texas, March 23, 2016 /PRNewswire/ -- About six in 10 credit cardholders typically pay cash for purchases of less than five dollars, according to a new CreditCards.com report. 27% prefer debit cards and 11% normally use a credit card for a small purchase.
However, cash usage is down seven percentage points from 2014. Debit cards are up five percentage points and credit cards are unchanged.
There's a clear generational divide: 41% of people under age 50 prefer cash for small transactions and 40% like debit. Among those 50 and older, cash is the runaway winner (74%). Millennials are the most likely to use debit (46%) and credit cards (18%).
"I'm confident that debit and credit cards will gain even more market share in the years to come," said Matt Schulz, senior industry analyst, CreditCards.com. "Credit cards offer better protection against identity theft and fraudulent charges, so I think they're the best choice."
- 70% of rural credit cardholders prefer using cash for small purchases versus 59% of urbanites and 54% who live in the suburbs.
- The vast majority of cardholders in the Northeast and Midwest prefer cash compared with just 46% in the West.
- As annual household income increases, the likelihood of using cash decreases.
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CreditCards.com commissioned Princeton Survey Research Associates International to obtain telephone interviews with 616 major credit cardholders living in the continental United States. Interviews were conducted by landline and cell phone in English and Spanish by Princeton Data Source from March 3-6, 2016. Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error is plus or minus 3.7 percentage points.
CreditCards.com is a leading online credit card marketplace, bringing consumers and credit card issuers together. At its free website, consumers can compare hundreds of credit card offers from America's leading issuers and banks and apply securely, online. CreditCards.com is also a destination site for consumers wanting to learn more about credit cards. Offering advice, news, features, statistics and tools, CreditCards.com helps consumers make smart choices about credit cards. In 2015, over 27 million unique visitors used CreditCards.com to find the right credit card to suit their needs.
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