Consumers more financially 'savvy'

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Consumers more financially 'savvy'

Wed 6th Jun 2007

Consumers are becoming more wary of hidden charges on their credit cards, according to new research from payment association Apacs.

A spokesperson for the group, Mark Bowerman, has told how the total amount of cash withdrawn on from ATMs by credit card has dropped from £9.17 billion to £8.22 billion between 2005 and 2006.

The ten per cent decrease compares to a similar increase in debit card use at ATMs, with consumers spending rising from £141.8 billion to £156.2 billion during the same period.

Mr Bowerman said this figure showed how customers were aware that there can benefits to using debit cards at ATMs rather than credit cards.

"This suggests that customers do understand that taking cash from cash machines with their credit cards will generally cost them more, so they prefer to use their debit cards where they can," he said.

Mr Bowerman also said that the evidence was indicative of a greater financial awareness of consumers than there was five years ago.

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