Debit cards appear to function chiefly as a replacement for hard currency and cheques ( Borzekowski et al. , 2006 ) . This is due to the promotion of engineering development for banking services to consumers. Nowadays, there is no demand for consumers to physically travel to the bank themselves because they can make all the payment by electronic banking, cyberspace banking and money backdown is even possible by utilizing machine-controlled Teller machines ( ATMs ) ( Scholnick et al. , 2007 ) . Furthermore, they can buy whatever they want by utilizing recognition cards or debit cards. There are differences between the debit cards and recognition cards. Debit cards are a signifier of payment that requires a purchaser to hold financess in his or her history before a purchase dealing is consummated. However, Credit cards are a manner of payment that allows a purchaser to buy a merchandise or service instantly even if the purchaser does non hold the money at manus. The purchaser is able to make this because a fiscal establishment has extended recognition to him or her ( Foscht. T, Maloles III. C. , Swoboda. B. , Swee-Lim. C. , 2009 ) . Thus, many picks for doing payments do life easier. As a decision, the grounds for choosing this subject is the increasing population of consumers utilizing debit cards today. In add-on, the debit cards are more popular presents hence catching the recognition cards ( Zinman, 2004 ) .

Research Question

Why debit card is acquiring popular to recognition card in Malaysia?

Research Aims

To compare the differences between debit cards and recognition cards in Malaysia.

To happen out client perceptual experience on debit cards.

To happen out why debit card is acquiring popular in Malaysia.

To analyze major factors that influences the use of debit cards in Malaysia.

To urge the ways for bettering the characteristics of debit card.

Literature Review

First of all the ground for taking this subject is because presents more and more people are utilizing debit cards and some consumers think that conveying a card is more convenient and safer than transporting hard currency when going. Furthermore, by use of debit cards, consumers would non happen themselves in debt. Further, they can easy do payments by utilizing debit cards. Therefore, this subject is of sufficient importance for it to be researched ( Baptie. C. , 2002 ) .

Furthermore, there are certain grounds for the increasing population of debit autos users. Peoples utilizing debit cards prefer it as they think that this is safer and convenient manner to do payments instead than utilizing hard currency. In add-on, there are differences between the debit cards and recognition cards ( Foscht. T, Maloles III. C. , Swoboda. B. , Swee-Lim. C. , 2009 ) . Whereby debit cards are a signifier of payment that requires the purchaser to hold the financess or a line of recognition attached to the history in his or her history before a purchase dealing is consummated. In add-on, debit cards can be said as replacement for the hard currency and cheque. Recognition cards are a manner of payment that allows a purchaser to buy a merchandise or service instantly even if the purchaser does non hold the money at manus. The purchaser is able to make this because a fiscal establishment has extended recognition to him or her ( Foscht. T, Maloles III. C. , Swoboda. B. , Swee-Lim. C. , 2009 ) .

Furthermore, the advantages for utilizing debit cards include it being a cashless manner of paying hard currency for a merchandise or service by the immediate tax write-off of the payment sum from the history. This besides ensures that the client does non pass more than they can afford. Thus, debit cards serve to assist command passing wonts ( Foscht. T. , Maloles III. C. , Swoboda. B. , Swee-Lim. C. , 2009 ) . Besides that, rapid growing of debit cards are catching the recognition cards as the most prevailing signifier of electronic payment at the point of sale yet determiners of consumer pick ( Zinman, 2004 ) .

Following, Visa United States of America said that debit cards overtake recognition cards whereby clients use debit cards to track their fundss. Debit cards let consumers have a better thought of where they spend their money and be more cognizant of how much they are passing. Further, consumers will experience safer by utilizing debit cards than transporting hard currency. In United States of America about half of the consumers carry a debit card to avoid transporting a cheque book. It is more convenient than composing a cheque and safer than transporting a batch of hard currency. Debit cards play an of import function as a helpful tool in family budgeting. However, consumers in United States of America complained approximately high debit card charges ( Baptie. C. , 2002 ) .

There are many factors act uponing the determination of utilizing debit cards. The acceptance of debit cards is affected by the demographic feature of card users such as income earned, instruction, age, gender and matrimonial position ( Simon et al. , 2009, Schuh and Stavins, 2009 ) . In most of the back uping diaries research it is found that debit users are younger, have higher income, more educated, are less likely to have a house and less likely to be marriedi??Carow and Staten, 1999 ) .

Womans tend to utilize debit cards more than meni??Carow and Staten, 1999 ) . In twelvemonth 2005, the per centum of people keeping debit cards are 47 % for males and 55 % for females ( Borzekowski et al. , 2006 ) . Furthermore, the highest instruction degree for people who were keeping debit cards was 60 % in 2005 and 72 % in 2006 ( Borzekowski et al. , 2006, Schuh and Stavins, 2009 ) . Furthermore, harmonizing to Borzekowski et al. , ( 2006 ) , in twelvemonth 2005 there were more debit card users who are individual. However, in twelvemonth 2006 married users more ( Schuh and Stavins, 2009 ) . Besides that, in twelvemonth 2006, 83 % debit card users were between the ages of 25 and 34 ( Schuh and Stavins, 2009 ) . However, in twelvemonth 2010 the age of users are from 18 to 29 ( Simon et al. , 2009 ) . Further, in-between income society uses more debit cards than higher income society which in twelvemonth 2006 ( 84 % ) whose income were more than $ 100,000 ( Schuh and Stavins, 2009 ) . However, there were many people utilizing debit cards in twelvemonth 2010 between holding a wage of $ 40,000 to $ 59,999 ( Simon et al. , 2009 ) .

Harmonizing to Brian Mantel ( 2000 ) , there are many other factors that influence the debit cards use such as the new merchandise acceptance, control disbursement wont, convenience, inducements and privateness and security. There are two theories in the new merchandise acceptance which are the new merchandise diffusion theoretical account and the new market development theoretical account ( Brian Mantel, 2000 ) . The new merchandise diffusion theoretical account is when the consumers perceive new merchandise to be the replacement for the merchandise presently use and understand such as the consumers perceive that the debit card can be the replacement for their recognition card due to the debit card dealing is a fixed fee per dealing. In order for suppliers can easy leverage the bing distribution and communications channels to bring forth consciousness and demand for the invention. Besides that, the new market development theoretical account is the debut of the new merchandise characteristics to new and different client sections such as the debit card characteristics are being introduced to the different age group of consumers instead than concentrate in the same age group of consumers. Therefore, this affects the determination of utilizing the debit card ( Brian Mantel, 2000 ) .

The controlled disbursement wont is really concern by the consumers. In add-on, consumers prefer to command and budget their fundss due to the desire to minimise the hazard of deficient financess ( Brian Mantel, 2000 ) . Furthermore, convenience is an of import term for the electronic payment by utilizing debit cards. Many measures offer longer periods of several hebdomads and convenience may be relevant merely for addition of electronic measure payment users. The penchants for convenience influence the degree of usage of electronic measure payment ( Brian Mantel, 2000 ) .

Besides that, debit card characteristics act as an inducement for acceptance of debit cards. Consumers prefer to follow debit card whereby it is a less expensive method of payment and avoiding the punishments fees harmonizing to Brian Mantel ( 2000 ) . This is because they are really sensitive to monetary value alterations of payment services harmonizing to Humphrey, Kim and Vale ( 2001 ) . Therefore harmonizing to Brian Mantel ( 2000 ) , debit cards are really utile to them. With the new merchandise acceptance factors it might propose that inducements influence the initial determination for the electronic measure payment.

In add-on, wagess plan is besides a type of incentive factor that influence the debit cards use ( Cheney, 2007 ) . Harmonizing to Hayes, debit reward plan is a type of wagess currency such as points, air hose stat mis, or hard currency inducements. Hayes ‘s study consequence shows that the point wagess are more popular among the issuers. Further, Hayes and Paur noted that this debit card wagess plans are a comparatively recent phenomenon which particularly with the regard to PIN debit card purchases. Although this debit wages plans are non every bit successful as recognition cards. However, in twelvemonth 2007 Debit Issuer Study it shown that debit card market is go oning to germinate and turn ( Cheney, 2007 ) .

Further, privateness and security are a really of import term to consumers. Consumers ‘ perceptual experience of internet dealing security and uncomfortableness with giving history information to gross revenues representatives do non act upon the usage of electronic measure payment by debit cards ( Brian Mantel, 2000 ) . There are many younger consumers preferring to utilize electronic payment. They are more likely to see the Internet as secure beginning for them to pay their measures ( Brian Mantel, 2000 ) .

The consequences from the new acceptance factor are for those moderate and high resources consumers they will follow debit card for the convenient intent when buying in a big shopping trip. However, the moderate and high resources consumers will utilize debit card for control intent when it uses for minor expenses and fast nutrient ( Brian Mantel, 2000 ) . Furthermore, there are 44 % of the homeownership prefers to utilize electronic measure payment. For debit card users who use it for convenient intents there were somewhat important at 10 % . They were 88 % more likely to utilize electronic measure payment if the direct payment offered a 5 % price reduction on monthly measures. The security for consumers who dislike the thought of person automatically retreating money from one ‘s bank history has decreased 20 % chance of electronic measure payment usage ( Brian Mantel, 2000 ) .

As a decision, there is understanding with all the diaries that had been chosen because it is agreed that younger people will utilize more debit cards due to their income. Younger people do non hold much income therefore they use debit cards more than recognition cards as compared to those who have higher wage. Furthermore, they use debit cards because of they do non hold much money to settle their payment if they use recognition cards and do non desire to be in debt. In add-on, they will utilize debit cards more than others. Younger people will besides take into consideration the fee charges for the cards.

Conceptual model for this survey:





Income Degrees

Debit cards use

Marital Status

New merchandise acceptance

Control and budgeting



Privacy and security


Table 4 ( set it under Appendix )

Current Adoption of Payment Instruments

Percentage of consumers


Paper instruments 98.3

Cash 98.2

Check 91.3

Money order* 18.3

Travelers check* 4.7

Payment cards 93.4

Debit 80.2

Recognition 78.3

Prepaid 17.2

Other payment instruments 81.2

Online banking measure payment 52.5

Electronic bank history deduction* 73.4

* Adoption is defined by incidence of usage in a given twelvemonth.

( Foster, Schuh, and Zabek 2010, forthcoming )

Table 19 ( set it under Appendix )

Use of Payment Instruments in a Typical Month, by Type of Instrument

Percent Number per capita

Share Mean Median

Entire payments 100.0 76.7 59.1

Paper instruments 36.5 28.1 19.3

Cash 22.7 17.6 9.8

Check or money order 13.7 10.6 5.7

Travelers check 0.0 0.0 0.0

Payment cards 52.9 40.3 27.3

Debit 31.0 23.9 10.0

Recognition 21.3 16.4 5.0

Prepaid 0.6 0.4 0.0

Other payment instruments 9.7 7.4 4.0

Online banking measure payment 2.7 2.2 0.0

Electronic bank history tax write-off 7.0 5.3 2.0

Direct tax write-off from income 1.0 0.8 0.0

( Foster, Schuh, and Zabek 2010, forthcoming )


Quantitative approached is being used in this research. The types of information required are primary beginning by study and secondary beginning by diary and internet resources. Therefore, both primary and secondary beginnings are being used in this research. This quantitative attack is a study which involves interviews with a big figure of respondents utilizing a predesigned questionnaire. There are some advantages in utilizing this questionnaire study which is the standardisation where respondents are asked the same inquiries and are exposed to the same response options on each inquiries, easiness of disposal where by the respondents make full out the questionnaire unattended and sensitiveness to subgroup differences.

Therefore, in order to carry on a self-administered study, questionnaires will be used as a research instrument. A self-administered study is one in which the respondent completes the study on his or her ain, it is a traditional “ paper and pencil ” study and is a group self-administered study and slump study whereby respondents make full out at leisure.

There are some advantages for this self-administered study which can assist to cut down cost by extinguishing the demand for an interviewer or an interviewing device, respondents have the controlled gait at which they answer, no interview-evaluation apprehensiveness whereby respondents will experience comfy when they fill out the study signifier without the force per unit area of people looking at them, they can be administered from distant locations utilizing mail, electronic mail or telephone, therefore, really big samples are executable, doing the consequences statistically important even when analysing multiple variables, fewer misunderstood inquiries and inappropriate responses, greater control over the environment that the study is administered in and extra information can be collected from respondent.

However, there are some disadvantages for the self-administered study. This includes the respondent commanding the study whereby sometimes they do non direct in on clip or direct back the study signifier, deficiency of monitoring and inability to understand hard inquiries. Therefore, there should be simple and clear inquiries to non burthen respondents in replying the questionnaire, standardised inquiries, takes long clip to have response, short questionnaire aid interviewee understand the inquiries.

There are some ways to get the better of the self-administered study ‘s disadvantages by reminder to them to direct back questionnaires, utilizing simple diction and grammar, avoid laden inquiry such as two inquiries in one, put every point in one inquiry, major capable countries grouped together and present under header and set uping the inquiries from simple inquiries to more sensitive affairs. The order of one point to another should besides be followed.

Further, non-probability samples are being used. It is a self choice of persons willing to take part. It is fast, easy, cheap and topics are readily available although it. Therefore, convenience sampling has been taking which may do an mistake by taking the incorrect samples.

Furthermore, the pilot trial is a pre-testing inquiry before study launched. This is to better the dependability of informations and to guarantee informations collected are valid. Reasons for making pilot trials are whether respondents understand the inquiries, effectivity of informations gaining control, edit field and right sequences of respondents.

In add-on, informations aggregation study can be merged with the research aims by comparing of the differences between debit cards and recognition cards, to happen out more on client perceptual experience on debit cards, why debit card is acquiring popular in Malaysia, to analyze major factors that influences the use of debit cards in Malaysia and to urge ways to bettering debit cards.

Last but non least, SPSS version 16 will be used to analyze the research aims. In add-on, average analysis and ANOVA trial will be used for the questionnaire.

Discussion of entree and ethical considerations

In order to finish this research, the questionnaire needs to be developed and study signifier to be given out for respondents to make full them up. Therefore, there might be some ethical issues involved that needed to be taken into consideration. First, the possible ethical issues are the namelessness of participants whereby any personal item at any point during the interview and study will non be used. Furthermore, the confidentiality or privateness of participants is included hence merely inquiring what is needed for the study or thesis and if happening of a affair there where the participant does non wish to be included will be excluded. Further, the participants are voluntary and will be offered an chance to take portion in the study and doing determinations voluntarily whether to accept or reject. In add-on, all participants will cognize that they are involved in the research by demand of subscribing a consent signifier that they are accepting to take portion in the research voluntary. Furthermore, the personal safety of all interviews will be conducted in a public topographic point therefore there is no hazard of personal safety other than normal fortunes. Following, there is informations protection therefore all informations will be kept safe and confidential and informations will non be disclosed to other than the research paper. In this research there could be some uncomfortableness, emphasis, anxiousness or embarrassment to the participants. Therefore, merely the right inquiry and focussed inquiry will be asked and non show any feeling from participants. Ensure that the participants are comfy in replying the inquiries. When any mark of uncomfortableness is shown, the research will withdraw instantly and no force per unit area is put on the participants to reply all inquiries. Following, the hazard is taken into concern whereby the interview will be held at a safe topographic point and that both of the interviewer and interviewee will be safe even when on the journey to interview. Last but non least, Internet will be used for informations aggregation and usage. Therefore, all informations used from the Internet will be decently referenced.



In order to finish this research, the clip required is of import to be considered on the undertaking completion. Therefore, it merely has six months clip period to finish the research. Further, pilot trial will be used. Pilot trial is a pre-testing questionnaire whether the questionnaire set is easy to understand by the respondents. If some of the pre-testing questionnaire respondents do non understand. Improvement will be done on the questionnaire before it is given out for other respondents. Pre-testing is the best manner to guarantee the informations dependability of the questionnaire. After that, the study signifiers will be given out to people to be filled. In add-on, it involves the printing cost and going cost when the study signifiers are given out to respondents. The printing cost is for 200 ringgit and the traveling cost is 50 ringgit. Furthermore, the secondary resources used were from the published diaries from Teesside ‘s journal database and internet resources from Google web site. Last but non least, SPSS will be used to analyze the valid response.