Durbin Amendment Not Slowing Debit Card Marketing

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With the estimated 42 million offers for new debit cards that hit American homes in 2012, it’s no wonder how debit cards remain the most popular plastic payment type among Americans. In 2012, debit purchase volume jumped 12%, versus an increase of only 8% for credit card purchases.

Comperemedia reports that bank offers for new debit cards increased over 6%, despite the October 2011 Durbin Amendment which caps debit swipe fees and profitability for banks. While direct marketing volumes are up only slightly, it’s taken two years for banks to determine how to tackle debit cards, resulting in new ad content that has changed drastically. Consumers are now encouraged to use debit cards for security and convenience for everyday purchases. High value incentives have become a thing of the past, replaced by incentives with a much lower value while reward programs entice customers to take advantage of new card features.

“Banks have a vested interest in increasing debit card usage, as increasing volumes will increase revenue,” said Susan Wolfe, VP of research at Mintel Comperemedia. “Getting customers to use their debit cards throughout their day could have a big impact in transaction volumes and thus the revenue.”