News Releases
Canadians' affinity for electronic transactions increases significantly during the holiday season – a trend that should continue in 2007 – according to statistics from BMO Bank of Montreal's Card & Retail Payment Services group.
"BMO is expecting to process more than 26 million debit card transactions this month, an increase of almost 11 per cent over the monthly average," said Nancy Marescotti Director, Card & Retail Payment Services, BMO Bank of Montreal. "On the credit card side, we're projecting close to 28 million transactions – more than an 18 per cent increase over the eleven month average for the year."
Marescotti said the numbers for the first seventeen days in December are tracking fairly closely to the daily average for the month of December last year.
"Interestingly, we're also expecting to see a pronounced increase in online transactions, including cross border transactions," said Marescotti. While I'm sure that some of that increased activity can be attributed to the loonie's remarkable rise of late, we're also noting that customers are becoming increasingly more attracted by the growing breadth of online retailers and the speed and convenience that shopping online affords them."
She also noted that the season's busiest transaction day has fallen on the Friday before Christmas for the past several years and a similar trend is expected this year. "We are expecting approximately 4 million debit and credit transactions on December 21st .However, the peak period in transactions per second is actually expected at some point in the afternoon of Christmas Eve as last-minute shoppers flock to the stores in search of that perfect gift. At that point, we anticipate over 100 credit and debit transactions per second."
According to Ms. Marescotti, the average debit card transaction is estimated at about $50; the average credit card transaction is estimated at just more than $110.
Doug Porter, Deputy Chief Economist, BMO Capital Markets, said retail sales have strengthened through 2007, rising more than 5 per cent from January to September from a year earlier. "Buoyed by low interest rates, retail price cuts from the strong dollar, coming tax reductions and high consumer confidence, spending should remain brisk heading into the key holiday shopping period," said Mr. Porter.
"With employment gains still strong, solid income growth should contribute to broad-based gains across all retail spending categories in December," he said.
Seven Shopping Days Left – Pay Heed to These Last Minute Holiday Shopping Tips
With only eight shopping days remaining before Christmas, Ms. Marescotti offers the following Do's and Don'ts for the last minute holiday shopper:
Don't Panic – You still have time, but don't leave everything until the weekend, if you can avoid it. Keep your shopping list handy when you're out and about and try to pick up one or two items each time -- during your lunch hour or after work. A call ahead to the retailer can confirm whether or not your item is in stock. Ask them to hold it for you so you can get in and out of the store quickly and on to the next stop.
Do Take Advantage of Store Sales During the Final Week – Don't pay more than you have to. Overpaying is overspending. Retailers are anxious to clear their inventory before Christmas so watch for significant sales this week. Many retailers will discount their merchandise from 20 per cent - 50 per cent or more. Comparison shop before and look for store sales to ensure you're getting the best price.
Do use a credit card and debit card that rewards you for your purchases – Even if you pay full price, you can maximize the value of your purchases by using a credit card that offers rewards for every dollar you spend. Some cards offer attractive 'cash back' options while others let you redeem your rewards for travel or merchandise. BMO's Mosaik MasterCard offers the best of both, with CashBack reward options or AIR MILES Rewards which can be redeemed from a comprehensive choice of more than 800 redemption items from movie passes, CDs and DVDs, electronic merchandise, sports and recreation, travel and more. Any of these could make a great gift for family or friends. And the opportunity to collect AIR MILES reward miles on debit card purchases is automatically included at no extra cost when you bank with BMO Bank of Montreal – so you can start collecting on debit purchases right away.
Don't get scrooged when you shop online – Shopping online can save you time and money but stick to the reputable sites and beware of sites you don't know. Pay close attention to shipping dates and build in extra delivery time so you won't be disappointed. For added protection, consider purchasing your gifts with a credit card that offers some form of insurance, which will cover you if gifts you buy get lost, stolen, or broken.
MasterCard SecureCode from BMO Bank of Montreal, lets you shop online safely at SecureCode-enabled merchants. When you provide your SecureCode during your online transaction, BMO will authenticate and confirm that you are the individual making the purchase.
BMO Bank of Montreal customers who make purchases over the internet at participating retailers can have their purchases debited directly from a BMO Bank of Montreal chequing or savings account that is linked to their debit card for the purpose of making payments, adding another convenient way to earn AIR MILES reward miles by using their debit cards to pay for online purchases. BMO is the only financial institution that rewards debit purchases with AIR MILES reward miles.
Do stick with just one credit card – Keep it simple. You'll find it easier to track your expenses on a single bill at the end of the month if you put all of your holiday purchases on just one credit card. And if you're a Loyalty Rewards Collector, consolidating all of your purchases on a single card will help you reach your rewards goals faster and redeem sooner.
Don't let interest charges pile up – January bills can bring February blahs. Don't let interest charges on your credit card balances eat up your holiday savings.
Do pay the piper – Ideally, you should always pay your balance in full by the due date to avoid interest charges altogether. If you expect to carry a balance however, minimize your overall costs by making purchases with a low-interest credit card or by transferring your balances to a low-interest line of credit.
Don't wait to report a lost or stolen card – Protect yourself by keeping a copy of your credit card number and the contact information for your credit card issuer so that you can quickly report a lost or stolen card.
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