Credit Card Issuers Face Challenges Amid Opposing Consumer Trends

Credit card spending continues to grow briskly. In 2012, there was a $7.7 million shift in consumer spending from debit cards to credit cards. However, outstanding credit card balances are gradually falling. There has been a 23% drop in total card debt since a peak in 2008.

Because 70% of card revenue derives from interest, the sustained decline in balances is steadily eroding issuers’ income – even as spending increases. To remain profitable in the midst of changing consumer and profoundly altered industry economics, it is crucial for credit card issuers to have the right processing solution in place.