Consumers that pay for everyday items by debit card are missing out on potential extra money, it has been claimed.
American Express has offered borrowers some debt advice, revealing that those who use debit cards could gain hundreds of pounds’ worth of free cashback if they switch to a credit card.
Vice president of UK lending Tom Allder said that the firm is on a “quest” to get UK households to ditch their debit cards.
“Simply by changing the way they pay for these items, people could be earning themselves hundreds of pounds of free cash,” he remarked.
In a survey by the organisation, 40 per cent of respondents said they use debit cards to pay for everyday goods.
However, a “savvy” 20 per cent were using credit cards as a way of building up cashback and reward points, it added.
Only 22 per cent of students own a credit card while 73 per cent have a debit card, according to the UK payments association Apacs.
By Jamie Price