According to Javelin Strategy & Research’s Nov. 2011 report entitled “Online Retail Payments Forecast,” ecommerce credit card usage is on the rise, up 16 percent in 2011 to $309 billion and projected to rise to $444 billion by 2016.

Many consumers are taking advantage of various rewards programs that credit card issuers are using to incentivize charging in the wake of the Durbin amendment to the Frank-Dodd act that capped debt card transactions at 21 cents, costing the banking industry billions.

“After several years of declining use, credit cards are poised for resurgence,” Director of Payments Research at Javelin Beth Robertson said. “Despite the nation’s very rocky economic recovery, consumers appear to have halted their belt-tightening and bank incentives to use credit cards rather than debit are gaining appeal.”

This could spell bad news for ecommerce sites that were anticipating a reprieval from capping debit transaction fees. Credit card issuers have been pushing card applications like never before, with mailer applications rising 85 percent since the beginning of 2010.

Research firm Mintel Comperemedia reported that credit card purchases on Black Friday rose 7.4 percent from last year, signaling that consumers are easing up on their fear of debt and willing to embrace rewards that entice charging. It is estimated that nearly 80 percent of credit card offers have rewards programs attached to them, up from 60 percent two years ago.

“Non-traditional payment methods will also see growth as alternative payments make inroads on traditional payments share,” Founder and President of Javelin James Van Dyke said. “While online alternative payments represent less than one-fifth of e-commerce transactions, these options are well positioned to benefit from the introduction and adoption of emerging payment environments, such as the mobile channel and social networking.”

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