Credit Card Use Rising, Debit Cards Down

New York, NY, Dec. 5, 2011 -- Credit card use has been steadily rising this year.

At the end of 2008, more consumers were using debit cards than credit cards but now that trend has reversed, according to First Data, which processes card transactions for 4.1 million merchant locations.

Purchases made with credit cards rose 8.2% in the first quarter of 2011, 9% in the second quarter and 10.6% in the third quarter, according to First Data. That compares with gains in debit card use of 9.6%, 8.3% and 5.9% for the same quarters.

Banks have been ramping up solicitations and boosting incentives for credit cards over the past year in an effort to get them to choose credit over debit.