Credit cards losing popularity, says APACS |
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Fri, 25 Nov 2005 20:05
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LONDON: Spending on credit cards in Britain is set to fall this Christmas for the first time in 10 years, according to the Association of Payment Clearing Services (APACS). However, total spending during the season is set to go up, APACS said.
The organisation said spending in December is expected to rise by 11 per cent to 48.7 billion pounds compared to last year and debit cards will account for a spending of as much 17.8 billion pounds, or a 20 per cent increase, compared to last year. Spending on credit cards will come down by 3.5 per cent to around 11 billion pounds.
APACS said December will see a 10 per cent increase in spending on cards compared to other months. The week before Christmas will see a spending of around 7.6 billion pounds through cards, it said.
APACS also said there is a general preference for debit cards, but added that credit cards are likely to remain the first choice of payment for online purchases -- as much as two-thirds of the 4 billion pounds spent on online purchases will be through credit cards.
APACS director of communications said debit cards are increasingly replacing cash and cheques for everyday purchases and this trend has definitely been helped by chip and PIN which has made paying with plastic faster and safer.
As per section 75 of the Consumer Credit Act, the card company is liable, along with the seller of goods or services, in case of breach of contract.
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