Wednesday, February 23, 2005

For Some, No Purchase Is Too Small For Plastic

Great article regarding the shift in consumer attitude regarding using credit cards for small purchases. The stigma and guilt are going away.

Interesting also how increased use hasn't effected fraud:

"...even without signatures, fraud remains at an all-time low of 5 cents for every $100 spent on Visa cards. The company's research shows that low-value purchases tend not to attract fraud. And even if they did, Visa guarantees its payments to merchants."

The next step is figuring out a way to eliminating merchant reluctance. The dirty looks are still there even if consumers are ignoring them.

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