Credit card use 'fell behind debit cards in 2009'

The credit card is becoming less popular than the debit card, according to one expert.

Scheme debit cards are arguably having a wider acceptance than credit cards, according to one industry expert.

Robert Morgan, head of market analysis for banking research and adviser East and Partners, said people think they are less likely to accumulate a lot of Aussie credit debt if they pay for goods with their debit cards, according to the Sydney Morning Herald.

The scheme debit cards – similar to an Electronic Fund Transfer Point of Sale card – allow people to pay for things online like they can with a credit card.

Recent research by the organisation found debit cards were used in 35.8 per cent of merchant sales in 2009, but credit cards were placed second.

Mr Morgan added: "Plastic is not confined to credit cards. With the global financial crisis, of course, people have tightened their belts and looked at credit spending habits."

A recent survey by investment bank UBS indicated credit standards could be tightened further over the next six months - mostly affecting small businesses, consumers and home borrowers, the Australian Associated Press reported.

By Mark Hornby