And, of course, there's the increasing weight mega-banks like Citigroup (nyse: C - news - people ) and post-merger J.P. Morgan Chase (nyse: JPM - news - people ) and Bank of America (nyse: BAC - news - people ) will have on the industry.
What does all of this mean for U.S. consumers? It's a mixed bag. Wal-Mart no longer accepts MasterCard signature-debit, while card issuers are set to begin clearly labeling cards credit or debt. Credit and charge card rewards for consumers are growing in value as debit rewards start to take hold. And some banks, taking a page from international practices, now charge users when they make a PIN-debit purchase.
Despite these trends, the move toward debit is clear. For example, U.S. consumers spent $82 billion with their MasterCard signature-debit cards in 2003, a 17% increase from the year before, compared with $405 billion on credit, just 8% growth. Total signature-debit transactions grew 16% to nearly 2 billion swipes compared with credit's 7% growth and 4.9 billion purchases.
Consumers are increasingly turning to PIN and signature debit for everyday purchases. The dollars come out of a checking account immediately, alleviating the worry of credit card bills and interest rates. However, many debit cards still carry a maximum daily spending limit (sometimes up to $5,000) and don't offer cash-back rewards, so those big purchases will still have to go on your credit card.