Analyze This: Debit Vs. Credit

Great chart in this WSJ article debating merits of debit vs. credit:


Questions to get the discussion going:

  • How much overlap is there between the top credit card and debit card providers?
  • Taking JP Morgan Chase as an example, assuming that the average annual interest rate on their credit cards is 18%, how much interest are they collecting on their unpaid balances every year?
  • Which mode of payments are expected to increase between 2013-2018 (see chart in lower left)? ¬†Which mode of payments are expected to decrease in this time period? ¬†What headline could you put on that chart?
  • Which credit card companies are growing fastest (bottom right chart)?
  • What are your favorite methods of paying for stuff?
  • Students can read the article linked here and debate the pros/cons of debit vs. credit.