The use of debit card in the US has declined from 68% in 2011 to 59% in 2013, as more consumers are using prepaid cards and non-traditional payment forms, according to a survey report by Mercator Advisory Group (MAG).

The report titled ‘Consumers and Debit 2013: A Shift to Alternative Payments’ is third in a series of eight Insight Reports by MAG presenting findings of the 2013 CustomerMonitor Survey Series.

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The report found that young adults, on an average, are not likely to use a debit card, while households earning less than $75,000 a year are also not using debit cards.

However, usage of general purpose reloadable prepaid cards is growing, especially among young adults, who use the cards to check cashing, bill payment, money transfers, payday advance/short-term loans, and rent-to-own arrangements.

MAG Primary Data Services including CustomerMonitor Survey Series manager and author of the report, Karen Augustine, said there can be no doubt that the Durbin Amendment to the 2010 Dodd-Frank financial reform act is taking a toll on debit card ownership.

"Debit account fees that many banking institutions have found necessary to charge to compensate for revenue they lost due to Durbin’s limits on debit card swipe fees appear to be leading important segments of the growing underserved population to shift to alternative financial services.

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"Young adults who might have opened debit accounts appear to be thinking twice about debit cards in favor of other, nontraditional payment forms," Augustine added.