Fed: Credit Card Use Outpaced Debit Growth for First Time In Nearly A Decade
By CU Today Staff —
WASHINGTON—Americans continued shifting away from checks and cash in 2024, with the number of noncash payments climbing to a record 236.6 billion and credit card use growing faster than debit card transactions for the first time in nearly a decade, according to preliminary results from the Federal Reserve's 2025 Payments Study.
The Fed said the total number of noncash payments made by consumers and businesses has more than tripled since 2000. Cards remained the dominant payment method, accounting for more than three-quarters of all noncash transactions by volume, while debit cards continued to represent the largest share of card payments despite faster growth in credit card usage.
By dollar value, Automated Clearing House (ACH) payments continued to dominate, with the Fed reporting that ACH transactions accounted for nearly three-quarters of the value of all noncash payments in 2024—the highest share recorded by the study. Meanwhile, both check usage and ATM cash withdrawals continued their long-term declines in both transaction volume and value.
The Federal Reserve Payments Study, conducted jointly by the Federal Reserve Board and the Federal Reserve Bank of Atlanta, has tracked U.S. payment trends every three years since 2001, supplemented by annual updates since 2017. The Fed said additional findings from the 2025 study will be released as further analysis is completed.
Originally reported by CU Today.