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Credit and Debit Card Market Share by Network and Issuer

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Credit and Debit Card Market Share by Network and Issuer

 

 

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Not only do most adults in the U.S. hold a debit or credit card, but many adults hold more than one. The Nilson Report noted that there were 6.96 billion credit, debit, and prepaid cards in the U.S. in 2018.

That's about 21 per person.

Keep in mind, though, that of the nearly 7 billion cards in the U.S., 71.7% were prepaid debit cards.

 

subprime discovery has more cards issued than Amex but only 3.5% of card volume versus >19% for amex :lol:

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Interesting piece. Thanks for posting.

 

I found this to be the most surprising and also a great trend.

 

The Bureau of Consumer Financial Protection reported that credit card debt as a percentage of purchase volume had fallen from 64.7% in 1996 to 26.5% in 2018.

 

People are catching on!

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The American Bankers Association reported in 2019 that as consumers exhibit good payment behavior, issuers are responding by slowly increasing credit lines; however, issuers are also slowing the pace of new account openings, particularly for prime (credit scores from 680 to 759) and subprime (scores less than 680) borrowers.

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On 10/12/2020 at 3:51 PM, Rogue said:

The American Bankers Association reported in 2019 that as consumers exhibit good payment behavior, issuers are responding by slowly increasing credit lines; however, issuers are also slowing the pace of new account openings, particularly for prime (credit scores from 680 to 759) and subprime (scores less than 680) borrowers.

I think the issuers are realizing that they are mainly fighting for the same group of customers. They all want to be the primary card in the wallet of the consumer with superprime credit and a good income. This would explain the all out brawl between Chase, AmEx, and Citi to offer the most rewards. As the article pointed out, consumers with subprime scores only accounted for 5% of volume on credit cards. I think this really highlights the wealth gap, because the article shows a strong connection between high credit scores and those who are spending the most on credit cards. The article also mentioned at the beginning that out of all credit and debit cards issued, that prepaid debit cards were the most issued. That points to a large population of the country being underbanked and using prepaid debit cards rather than traditional checking accounts.

 

Other interesting things:

 

Discover issues more cards than Amex (57 million to 53 million), but Discover has a much lower purchase volume (19.6% to Amex, versus 3.5% for Discover). Discover needs to get their card users to spend more money on their cards. Obviously, it seems Discover customers are more subprime in the credit department and spend a lot less money.

 

Store cards are issued the most of any credit card, but they have a small purchase volume of only 4.6%. I think this can mean two things: store cards have low limits and people don't spend very much on them as a consequence and people are opening these on a whim and only using them for that one initial purchase.

 

 

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For store cards the wife and I have 1, a Kohl's card. At the most we might spend $400 per year on it. The only reason it gets any spend is you have to use it with their 30% off coupons. When we we were young, and bought more clothes and household large ticket items, we had Macy's (converted from the old Dayton's card), JC Penneys, Herburgers, Home Depot and Sears (mainly for appliances). Nowadays we just use a reward card for all those type of purchases.

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11 hours ago, 8ball said:

For store cards the wife and I have 1, a Kohl's card. At the most we might spend $400 per year on it. The only reason it gets any spend is you have to use it with their 30% off coupons. When we we were young, and bought more clothes and household large ticket items, we had Macy's (converted from the old Dayton's card), JC Penneys, Herburgers, Home Depot and Sears (mainly for appliances). Nowadays we just use a reward card for all those type of purchases.

Same here. I am not really a fan of store cards anymore, unless they offer a really good discount. It's just more stuff to manage, so I would rather have fewer cards. I keep my Target store card for the 5% because I do shop there a lot and my B&H card for the sales tax discount (8.25%) on big ticket electronics, but there aren't really any other ones I would use a lot and get a good return from that would make it worth applying for/keeping.

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20 hours ago, RehabbingANDBlabbing said:

I think the issuers are realizing that they are mainly fighting for the same group of customers. They all want to be the primary card in the wallet of the consumer with superprime credit and a good income. This would explain the all out brawl between Chase, AmEx, and Citi to offer the most rewards. As the article pointed out, consumers with subprime scores only accounted for 5% of volume on credit cards. I think this really highlights the wealth gap, because the article shows a strong connection between high credit scores and those who are spending the most on credit cards. The article also mentioned at the beginning that out of all credit and debit cards issued, that prepaid debit cards were the most issued. That points to a large population of the country being underbanked and using prepaid debit cards rather than traditional checking accounts.

 

Other interesting things:

 

Discover issues more cards than Amex (57 million to 53 million), but Discover has a much lower purchase volume (19.6% to Amex, versus 3.5% for Discover). Discover needs to get their card users to spend more money on their cards. Obviously, it seems Discover customers are more subprime in the credit department and spend a lot less money.

 

Store cards are issued the most of any credit card, but they have a small purchase volume of only 4.6%. I think this can mean two things: store cards have low limits and people don't spend very much on them as a consequence and people are opening these on a whim and only using them for that one initial purchase.

 

 

 

I think your analysis is flawless, but I don't really see Chase in any real competition with Citi and AmEx.  Citi has a flat 2% which is really useful, except for their freaking FTF.  AmEx is also good for 2% on biz cards, but with the same damned FTF.  Chase, IMO, doesn't come close.

 

Strange about Disco.  I've had a Disco almost as long as I've had AmEx, but I only use Disco once every couple of months to keep it alive, unless they have a 5% category that happens to fit.  

 

Store cards.  I only have three now.  Macy's, Dillard's & Target.  The first two are also AmEx cards so they can be used easier.  Target is good for the 5%.  I used to have a Stinkrony JC Penny, but part of the deal when I had to FITA Stinkrony is that I give up a couple of my accounts.  I chose JCP because they are practically bankrupt anyhow and $5,000 limits don't give me -- figuratively speaking, mind you -- an election anymore.  

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11 hours ago, althes said:

I am considering getting a dillards.

 

I just got one.  :)

 

I applied for one last year and had a crappy experience.  First of all, applying in-store you have to deal directly with the Wells Fargo incompetent retail department.  The sales associate calls in the application and, in my case, the WF turd gave instant approval.  Two seconds later, they called the store back asking for ID.  I gave the clerk my ID and again my application was approved.  In the checkout process, the transaction wouldn't complete.  At the same time, WF turd called again and said to give it a few more minutes while they finished creating the new account.  A few minutes after that, they called and said the application was declined.  There reason was too many new accounts, too many inquiries.

 

Needless to say, I was pissed.  The Dillard's manager gave me a 20% discount as an apology.  It wasn't really Dillard's fault, though.  Still, a nice gesture.  I filed a CFPB complaint against WF and the same old crap.  No approval.  But weirdly enough (well, maybe not weird for WF) is that I applied for a WF LOC and it was approved for $25,000.  

 

A couple of weeks ago I was bored and since @hegemony has been failing his duty to keep me informed of new quality things to apply for, I decided to app Dillard's again.  I applied online and you get to the part with uploading a picture of your driver license and then submit.  Now, the license uploaded successfully and it was varied and accepted, but then waiting for the decision it finally said there's a problem and you need to call.  I called, and the WF turd said she can see the application, but it's not in the decision queue. I need to resubmit.  So I did.  Three times.  Each time the same crap.

 

So, CFPB.  This time they called and apologized and the guy sent me an application via e-mail.  I filled out the application and, knowing they ultimately will give e b.s. about wanting ID, I sent a copy of my license and a redacted paystub.  And nothing.  Waited two days with EQ unfrozen since he told me they pulled EQ.  Finally, I called him and he said it tase them a day or two to process applications and he'd do it right away. 1/2 an hour later he called and said my TU was frozen.  Well, no sheet.  He told me EQ.  So, I went and froze EQ and unfroze TU.  Then I got the alert that they pulled TU.

 

By then it was late for me and I went to sleep.  The next morning I got a congrats e-mail, but no details.  When you apply online you only get the store card and I was anticipating a store card with a $1,000 limit or something equally as laughable.  So, I called the customer service hotline.  The guy said he couldn't see details only that they limit appeared to be $5k.  Since store cards at Dillard's don't often reach $5k on igual approval, I figured it was the AmEx, but still didn't have much faith.  It was, after all, Wells Fartgo.

 

Before getting the card in the mail, it was reporting to EQ and TU at a $5k limit, but no indication on whether it was the store card or AmEx.  When I got the card in the mail, it was an AmEx.  The starting limit was $5k, still laughable, but not as laughable as $1k.  

 

The moral of the story -- it's Wells Fartgo.  Expect the worst and if you get a $250 store card consider yourself blessed.  

 

P.S. IMHO, Dillard's is a great store.  Far better than Macy's and the now bankrupt JC Penney.  The problem is they partner with Wells Fartgo. 

Edited by PotO

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