Consumers Keep Swiping as Credit Card Spending Defies Economic Gloom

Despite ongoing uncertainty about the effects that tariffs will have on the economy and concerns over inflation and the state of the labor market, many consumers haven’t slowed down their use of credit cards.

Earnings information from leading card issuers including JPMorgan Chase and Capital One details that credit card spending remains strong and delinquencies are trending down, according to a new report from the Wall Street Journal.

Consumers may need to tighten their belts if economic conditions worsen, but recent consumer activity should give credit card issuers confidence that cardholders won’t put their credit cards on the shelf just because they’re facing potential financial setbacks.

In fact, year-over-year spending figures across major credit card issuers in the U.S., including American Express, Bank of America, Chase, and Citi increased 7.5% during the third quarter, the report from the Journal indicates.

Many leading credit card issuers saw spending on cards grow during the third quarter.

Pam Habner, Head of U.S. Branded Cards and Lending at Citi, recently spoke with American Banker and shared some of her thoughts around consumer spending on cards in the U.S. as 2025 begins to draw to a close.

“I think the American consumer is incredibly resilient,” Habner said. “We’re seeing strong spending behavior amongst consumers. As an industry, we’re seeing losses moderate, and so we’re very optimistic about the U.S. consumer at this moment and very, very much looking forward to the end of the year with the holiday season just around the corner.”

Many credit card issuers are likely anticipating elevated spending levels by cardholders through the end of the year as people shop for the holidays. 

But issuers looking to accelerate cardholder spending, and perhaps get a leg up on other companies looking to capture more transactions from consumers this quarter, can take a page out of Bank of America’s playbook.

The bank recently announced that it’s running a one-day promotion in November that allows cardholders to earn boosted rewards on purchases they make with their credit card.

And other issuers, including American Express and Citi, have introduced enhanced premium card offerings this year that appeal to consumers who are seeking high-end rewards even if they have to pay more in annual fees to access them.

The Wall Street Journal report said that people who own credit cards that come with high annual fees are less likely to skip making a payment on their cards, and they also spend almost three times as much as people who own cards with lower fees.

As consumers confront a myriad of challenges in the economy, issuers that consistently meet the needs of their customers can avoid seeing drops in card spending.

Habner told American Banker that Citi stays close to its cardholders and aims to understand their expectations and how they’re evolving.

“We do deep research, and in that way we’re always anticipating their needs and hopefully bringing credit cards and products and services that actually meet their needs and help them live their lives successfully in this ever-changing world,” Habner explained.