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Nov. 13, 2013 – Credit card spending gained market share over debit card spending for the first time in more than 20 years, according to news reports.

Bloomberg cited Nilson Report, a payments industry newsletter, which reported that credit cards accounted for 52.82 percent of 2012 spending, an increase from 52.63 percent in 2011, while debit card spending accounted for 47.18 percent in 2012, down from 47.37 percent in 2011.

"U.S. caps on debit-card transaction fees, mandated by the Dodd-Frank Act, have spurred some of the biggest U.S. banks to push consumers into credit products to boost revenue. The limits have also driven banks to curtail debit-card rewards programs and add fees for checking accounts," the report said.

The caps noted above are set by the Federal Reserve Board's debit interchange rule, promulgated to implement the requirements of the Durbin Amendment in the Dodd-Frank Act. The rule is being challenged by merchants who contend that the Fed's debit interchange fee cap – 21 cents per transaction plus 1 cent for anti-fraud costs – is too high.

A federal district court found the rule to be invalid in July, but it remains in place as the Fed's appeal progresses.

NAFCU holds the Fed's fee cap to be too low, but it has joined with amici in a brief that asks the appeals court to overturn the district court ruling. The association, which is seeking to preserve credit unions' ability to serve their members by providing cost-effective card services, wants to see the Fed's cap on debit interchange fees raised.

Merchants are due to file a response by Nov. 20 to the Fed's appeal, and the Fed will have until Dec. 4 to respond to that.