Which form of plastic is more popular with American consumers? There are currently 576,400,000 credit cards in the United States versus 507,000,000 debit cards, so credit cards clearly have the upper hand. Among 2010 credit cards, 270.1 million are Visa (down 11% from 2008), 203 million are MasterCard (down 22% from 2008), 48.9 million are American Express (down 9% from 2008) and 54.4 million are Discovery (down 6% from 2008). Among 2010 debit cards, 382 million are Visa (up 18% from 2008) and 125 million are MasterCard (up 1% from 2008).
In a 2009 credit card satisfaction survey, the following credit cards ranked highest in customer satisfaction and popularity:
- American Express, with a credit card satisfaction rank of 762 out of 1000;
- Discover Card, with a credit card satisfaction rank of 751 out of 1000;
- National City, with a credit card satisfaction rank of 740 out of 1000;
- Wells Fargo, with a credit card satisfaction rank of 724 out of 1000;
- Barclaycard, with a credit card satisfaction rank of 717 out of 1000;
- US Bank, with a credit card satisfaction rank of 715 out of 1000;
- Chase, with a credit card satisfaction rank of 708 out of 1000;
- Citi, with a credit card satisfaction rank of 699 out of 1000;
- First National Bank of Omaha, with a credit card satisfaction rank of 689 out of 1000;
- Bank of America, with a credit card satisfaction rank of 687 out of 1000.
The birth of the credit card industry occurred in 1958, when the first widely accepted form of plastic was issued by American Express. This was followed by the first general-use credit card that allowed balances to be paid out over time, BankAmericard (later changed to Visa in 1977) in 1959. MasterCard began in 1966, when a number of banks formed the Interbank Card Association. This association bought the rights to use the name “Master Charge” from the California Bank Association in 1969; then renamed it MasterCard in 1977.
Though credit cards remain the dominant form of plastic in America, debit cards have gained popularity, especially as a form of online payment. However, that growth is expected to stagnate at around 27%. Here is a forecast for the volume of dollars expected to be traded through debit cards, and the percent of online shopping it constitutes:
- In 2008, $47 billion dollars was traded through debit cards, which is 26% of online shopping;
- In 2009, $57 billion dollars was traded through debit cards, which is 28% of online shopping;
- In 2010, $67 billion dollars will be traded through debit cards, which is 28% of online shopping;
- In 2011, $81 billion dollars will be traded through debit cards, which is 28% of online shopping;
- In 2012, $47 billion dollars will be traded through debit cards, which is 27% of online shopping;
- In 2013, $98 billion dollars will be traded through debit cards, which is 26% of online shopping;
- In 2014, $105 billion dollars will be traded through debit cards, which is 26% of online shopping.
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