Debit cards 'fantastic plastic for shoppers'

A study into the methods Britons used to pay for their purchases in 2007 has revealed that debit cards are still top of the shop, coming in higher than both credit cards and cash.

The study, carried out by UK payments association Apacs, found that spending on debit cards increased by 11 per cent last year to £109 billion, while cash rose by three per cent to £84 billion.

Perhaps unsurprisingly, the amount spent on cheques fell by 13 per cent in volume, while credit card spending remained relatively steady, increasing by only one per cent.

Sandra Quinn, director of communications at Apacs, said that Britons are becoming increasingly reliant upon debit cards as a result of their convenience, as well as the services, such as cashback, that they offer.

"As retailers are increasingly deciding to stop accepting cheques, it is expected that a large proportion of those payments will migrate to debit cards. This will simply accelerate a change that is well underway. Different situations suit certain payments and it seems that the high street is truly the place for the debit card," she said.

Health and beauty retailer Boots announced in 2006 that it was to ban payments by cheque in its stores and a host of other retailers, including Morrisons, have now followed suit.