Moneris Reveals Drastic Increase In Debit/Credit Transactions In Canada

Moneris Solution is Canada’s largest processor of credit, debit and gift card payments. Recently it has revealed that nearly every major merchant category has experienced rise in consumer spending on credit and debit cards from the second to the third week of December 2008, compared to the same week in the previous year that is 2007.

Press release for Moneris revealed that 2008 holiday season resumed itself from illness for some of the merchant categories and sown a dramatic growth in consumer spending across the country. Different departments and the apparel store made significant gains in December 2008, while the discount stores experienced the steepest debit/credit card dollar volume decline off all the merchant categories studied by Moneris.

Nationally, the department stores saw the increase of money charged on credit and debit card by nine percent compared to the previous year. Apparel stores claim the second place with six percent increase in credit and debit card sales after the department stores. But surprisingly the discount stores failed to live up to growth as predicted by some retail analysts and actually suffered eleven percent decline in credit and debit card dollar volume.

Their wholesale counterparts similarly weathered a substantial decline of about nine percent this holiday. The average ticket size, each transaction decreased by three percent for all merchant categories. This attributed to the discount offers by retailers, lower gas prices and overall economic climate.

"For months, there were signs of a softening retail market, as Canadians become more conscious and restrained in the spending habits," said Brian Green, SVP, and Moneris Solutions. "Our national, multiple methods of payment data prove that in fact, Canadians continued to spend during the holiday season and the number of transactions actually rose over previous year. These numbers offer customers and merchants alike a more reliable pulse on the Canadian economy."

This affected the aggressive and the early discount strategy retailers were deployed to entice shopkeepers off the streets and through their doors. Spending activity increased dramatically for the department and apparel store (nine and six percent rise respectively), for electronics (eleven percent increase) and for jewelers (twenty one percent increase). However only the electronics retails could sustain seventeen percent growth into December’s final Boxing Day week.

Restaurants profited remarkably well with much narrower weekly declines compared to the previous year 2007 December. More over the eateries continued their spike with a healthy increase of eight percent in the last week of the month compared to the same week previous year (although there over all there was six percent decrease for the month of December compared to the December 2007).

Drug store and jewelry store retailers were the most unaffected as they experienced on and a half percent and one percent fall compared to the previous year. Nationally, all the merchants pulled in two percent more in the month of December compared to the previous year, and seven percent more in the final week alone, ending the holiday season with a bright note.

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