Bank of America customers spent a record $100 billion on their debit cards for goods and services during 2004, making the bank the first financial institution to pass the milestone within any year.
The announcement reflects a Federal Reserve report earlier in December that consumers are using debit cards, credit cards and electronic payments more often than checks for the first time.
Bank of America reached the $100 billion milestone because customers with debit cards are using them more often, and a higher percentage of customers are getting the cards when opening accounts, said Ken Kavanagh, Bank of America’s Debit and Prepaid Cards executive.
Consumers are realizing that they have choices when it comes to how they pay for goods and services, Kavanagh said. People who decide they want to pay right away enjoy debit cards. Those who would rather pay later are using credit cards for their convenience, safety and speed. It’s all up to the customer.
Bank of America is the number one debit card issuer in the US, with more than 22 million cards issued, making up 15% of the market.