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.