MasterCard and Visa are both predicting that debit card use will continue to grow despite the new federal regulation that is causing chaos in the debit card industry.
Debit and ATM executives from both card issuers spoke at an annual industry conference on Wednesday and shared the same message that consumers will continue to use debit cards for everyday purchases, according to Reuters.
"Consumers are flocking to debit cards because they are intrinsically superior to checks," Leland Englebardt said, Reuters.com reports.
The new regulation, known as the Durbin Amendment, capped the amount that financial institutions could charge for debit card swipes. Since it went into effect in Oct., banks have struggled to find ways to make up for significant losses in revenue.
Bank of America and JP Morgan Chase both flirted with the idea of tacking on a monthly fee to debit cards but have since abandoned those plans.
Kimberly Lawrence, Visa's head of consumer products strategy and execution, said Visa projects debit transactions make up approximately 40 percent of consumer purchases. She said that percent will continue to grow.
"Regulation doesn't change any of those factors," Lawrence said, Reuters.com reports.
Lawrence, Englebardt and other members on a panel at the ATM, Debit and Prepaid Forum said that they saw a small uptick in debit card use in the past month.