Credit cards 'still important payment method'

Credit cards continue to be one of the most popular forms of payment among merchants, new research shows.

In news that could interest those on the search for a business credit card, East & Partners reveals that credit cards account for over a quarter (26.5 per cent) of all transactions between those merchants with an annual turnover of at least $1 million in the two-year period ending December 2008.

Debit cards, meanwhile, took up a 24.6 per cent market share, as the banking research firm states that they could soon overtake credit in terms of popularity.

However, Zoran Knezevic, financial markets analyst for East & Partners, states that "we still see credit cards as being a pretty important payment method", adding that people more often spend money on a credit card than on debit.

Those looking into Australian banking may also be interested to read comments made by prime minister Kevin Rudd earlier this month who called for banks to pass on the most recent interest rate cut to their credit card customers.

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