Popularity of debit cards is up - BBC News

Debit card game go on to be the most common method of payment in the United Kingdom with their popularity rising among consumers, states the UK's payments body.

Apacs said United Kingdom debit entry card disbursement reached £221bn in 2007, a rise of 13% compared with 2006 and nearly five modern times the degree of a decennary earlier.

Internet disbursement with debit entry card game also rose compared with recognition cards.

The figs came on the same twenty-four hours as Lloyds TSB faced unfavorable judgment for offering debit entry card game to 11 to 16 twelvemonth olds.

The High Street depository financial institution said it is offering its immature customers, who already ain a Lloyds cashpoint card, an ascent to a debit entry card.

The depository financial institution said that this was already standard pattern across much of the industry.

Fantastic plastic

Apacs said the rise in debit entry card usage outstripped that of recognition cards, which was up 6% to £133bn in 2007 compared with the former year.

The study also demoes that last twelvemonth debit entry card game even gained land in countries where recognition card game have got traditionally had a house clasp - particularly on the internet

Sandra Quinn, Apacs

Automated payments, such as as direct debits, grew the most year-on-year - up a one-tenth to £312bn.

In contrast, the usage of hard cash grew by just 0.4% and payments by check were down by 1% inch the same period.

"Over the past three old age we've seen a form emerge: debit entry card game have got increasingly go consumers' first pick over other options, such as as cash, checks and recognition cards," said Sandra Quinn, of Apacs.

She suggested that, despite the squeezing on family finances, early indicants from 2008 showed that there had not been a rush in recognition card spending.

"The study also demoes that last twelvemonth debit entry card game even gained land in countries where recognition card game have got traditionally had a house clasp - particularly on the internet," said Multiple Sclerosis Quinn.

But she advised consumers to utilize recognition card game when making online purchases owing to the greater consumer protection they provided.

Cards for children

The figs were published as Lloyds TSB revealed that it had started authorship to immature clients 1 calendar month ago to offer them a debit entry card.

Lloyds TSB states controls are in topographic point on teenagers' debit entry card use

Previously, children aged 11 to 16 with an Lloyds TSB business relationship were given a card which allowed them to retreat money from cashpoints.

The depository financial institution states it is writing to the children to offer them an "upgrade" to a debit entry card which they can utilize for purchases on the internet.

"The debit entry card makes not let clients to travel overdrawn and forestalls purchases on websites with grownup content or gaming sites," said a spokeswoman for Lloyds TSB.

The depository financial institution is writing directly to the youngster, rather than securing parental consent, but states it is putting ushers for parents in with the letters.

A parent or defender can inquire for the card to be blocked if they are not happy with how their kid is using it.

The depository financial institution will impose a fee on the retail merchant each clip the card is used.

One father reportedly complained to the bank, claiming that his 15-year-old boy bought inexpensive cigarettes, Sildenafil and a sham grownup Idaho on the cyberspace using one of Lloyd's cards.

The Visa-enabled card lets a child to retreat up to £300 from their business relationship in a twenty-four hours if they have got sufficient funds.