First off, let’s get back to basics.

The definition of debit cards: allowing customers to spend money by drawing on funds that they have already deposited at their bank.

The definition of credit cards: allowing consumers to borrow money from the card issuer and pay it back at a later date.

These are the two main card types. Both allow you to make purchases, and both allow you to withdraw cash. Consumers have an open choice of which to use in any transaction.

Here at Judopay, we see 85% of our customer’s customers using debit cards. Less than 15% use credit cards.‍

Now, we’re a digital company. We process online payments. On the web, on your mobile or in-app.

When I was growing up, I was taught that using a credit card was a safer way to pay online.

The premise being card details entered online are easier to clone than stealing your physical card. Therefore, you’re slightly more likely to be exposed to fraud online rather than through in-store payments.

Assuming that to be true, if your debit card is used fraudulently, the money leaves your account immediately. You can, of course, claim this money back. However, this could affect your credit score.

By contrast, if your credit card is used fraudulently, you simply notify your credit card company about the fraud and don’t pay for the transaction, while your credit card company resolves the matter.

Ergo… credit cards are the seemingly lower risk option.‍

However, it seems times have changed. The credit crunch has changed the world in many ways, and it seems like the choice between debit and credit card is one of these changes. Debit card purchases grew about 16 percent for the first three months of this year, while credit card purchases grew about 14 percent. This seems to have been triggered by a fear of credit from millennials.

Millennials are widely known to be the next customer segment with the greatest income and are therefore a good litmus test for the market. Millennials prefer to take a conservative approach to finances, preferring to use debit cards over credit cards, so they know the money is available to them and physically in their bank account before they make the purchase.

Judopay, as an online payment processor, has inbuilt machine learning models and device DNA that allows your business to detect and help prevent fraud. Regardless, but adapting to the ever-present trend of debit greater than credit, Judopay work at the source to help prevent fraud and make a customer experience as safe, seamless and simple as possible.