For the first time in history, debit card usage has passed credit card usage. A study by the Federal Reserve, shows that debit card usage is now 27% of non-cash transactions while credit is now 23%. There was no change in credit card usage from 2003 - 2006 while debit card usage went up 70% (from 19% to 27%) over the course of three years. At the same time the use of paper checks went down 72% and ACH bank drafting went up by 69%.

Nothing surprising but paper checks are definitely on their way out and are being replaced by electronic drafting and debit cards. It’s about time!

For more Federal Reserve Reports:
http://www.federalreserve.gov/paymentsystems/paymentsresearch.htm