Big Buys Go On Credit Cards, Little Ones on Prepaid Cards

Americans are more likely to use credit cards for bigger charges and prepaid cards for smaller purchases, according to a 2013 report by the Federal Reserve System.

In the study, which looked at card and banking trends in the U.S., it was found that more than a third of Americans used their credit cards for purchases of $50 or more, the most frequently used denomination for credit cards. Least common were smaller denominations. Only 9% used their credit cards for denominations of less than $5.

In contrast, prepaid cards were more likely to be used for denominations of under $5 (20%), compared to $50 or more 16% of the time.

A sample of 1,182 financial institutions participated, with a margin of error of less than plus or minus 5%. Surveys were collected between January and May 2013 by mail, fax, email and online.

See related: Using prepaid cards to boost rewards, More infographics