Debit and credit cards remain the top payment choices for holiday shoppers, with credit card users saying they value rewards and security when making purchases, according to a new survey by TD Bank.
Debit cards were the preferred choice for consumers, with 42% of respondents planning to use their cards for holiday purchases, according to the survey. Credit cards were the second choice at 34%, with many consumers drawn to the perks they offer and 69% of those who prefer credit cards citing rewards or cash back as the primary reason for their choice. In addition, 31% of credit card users said the protections provided by credit cards, such as fraud prevention and purchase protection, are key factors in their decision. Meanwhile, 18% of respondents still prefer cash or checks for holiday spending.
Regarding holiday shopping trends, the survey found that 52% of respondents plan to trim holiday spending out of worries about a possible recession, with 42% saying they are weighing their spending based on the recent elections. Still, 79% of respondents said they were confident in their ability to manage their holiday spending, with 64% indicating that they plan to spend less than $600 in total on gifts. More than half (55%) of respondents plan to make the bulk of their purchases on Black Friday on Nov. 29.
The survey also found that one-fifth (19%) of respondents are considering using generative artificial intelligence for their holiday shopping ideas this year. Of those respondents, more than two-thirds (69%) indicated that they have a preference for brands that offer AI or virtual reality features.
