(Des Moines, Iowa – December 4, 2012) – Card processor The Members Group (TMG) has released its Black Friday data, and the numbers match-up with predicted increases in consumer spending this holiday season. As well, TMG’s analysis indicates consumers got a jump on shopping this year, with average spend increases beginning the Tuesday before Thanksgiving.
“Consumers hitting the stores a bit ahead of schedule may stem from earlier promotion of online Black Friday offers, not to mention brick-and-mortar stores keeping doors open on the holiday itself,” said TMG’s Director of Marketing and Communications Georgann Smith.
Credit and debit users who carry cards issued by TMG financial institution (FI) clients spent slightly more on average this year as compared to the same period last year.
- The total spend amount for debit cardholders during Thanksgiving week averaged roughly $130 this year as compared to roughly $120 during the same week in 2011.
- Similarly, credit cardholders’ total spend amount increased $15, from $208 in 2011 to $223 in 2012.
“Black Friday data shines a spotlight on the consumer preference for credit when making larger purchases,” said Smith. “For community FI issuers, the key will be maintaining top-of-wallet status throughout the holiday season and beyond. And as more card offers hit mailboxes in 2013, the focus for these issuers must be on maintaining that competitive edge.”
Although average spend on credit was higher than that on debit, the total number of debit transactions continued to outpace credit for TMG FI issuers – at least for card-present transactions.
- On Black Friday alone, the total number of card-present debit transactions was nearly 15 percent higher than the total number of credit transactions. The same was true for Black Friday transactions in 2011.
The Wednesday before Thanksgiving – a big spending day for cardholders of TMG’s FI clients – showed even greater activity in 2012.
- This year, total credit transactions on Wednesday, Nov. 21 and Black Friday, Nov. 23, were nearly identical.
- For debit, the total number of transactions on Wednesday, Nov. 21, was nearly 5-percent higher than on Black Friday.
When shopping online, cardholders of TMG clients most often opted to use credit. Total card-not-present credit transactions were nearly 10 percent higher than the total number of card-not-present debit transactions.
“This behavior may be a reflection of consumers heeding advice to use credit when cybershopping,” said Karen Postma, TMG cards risk senior manager. “Many consumers understand there is a larger temporary financial impact when fraud occurs on their debit card vs. on their credit card."
- Average card-not-present transaction amounts on Black Friday decreased by roughly 3 and 4 percent on credit and debit, respectively, a possible sign of deeper online discounts.
- Interestingly, the Wednesday before Thanksgiving saw more card-not-present transactions than Black Friday – perhaps a consequence of online retailers offering discounts earlier in the Thanksgiving week.
- Cyber Monday still led the charge in total number of card-not-present transactions with nearly double the amount occurring that day than on Black Friday.
TMG’s Black Friday analysis is courtesy of the card processor’s proprietary analysis tool, ClearTrend. The tool can provide similar data on a per-FI basis for the processing clients of TMG.
“Exposing the patterns and trends in a particular portfolio is essential for the development of successful optimization strategies,” said Smith. “With intelligence specific to their customers, card managers can better understand how cardholders behave and can begin to create usable segments. Once cardholders are grouped, it becomes much easier for card teams to build out customized, valuable and truly relevant offers capable of growing the portfolio.”
About TMG
The Members Group (TMG) is dedicated to creating customized, technology-driven card processing and payment solutions for credit unions and community-based financial institutions across North America. Innovations in fraud management, loyalty programs, alternative payment systems and analytic reporting, and the competitive advantages they create, have helped TMG forge a new standard in offering cutting-edge credit, debit, ATM, prepaid card products and a P2P payment solution. For more information, visit www.themembersgroup.com.