Velera Payments Index: Card Transactions and Delinquencies Rise

By Roy Urrico

“Debit and credit card transactions and purchases strengthened in February, despite a backdrop of continued slow job growth, subdued consumer sentiment and rising global tensions,” reported the March 2026 edition of the Velera Payments Index. The study also including a “Deep Dive” into delinquencies, which have started to rise.

St. Petersburg, Fla.-based Velera, which describes itself as the nation’s premier payments CUSO, produces the Velera Payments Index to help credit unions and other financial institutions make strategic, data-informed decisions.

Economic Indicators

Source: Velera Payments Index.

From the Velera Payments Index:

• Year-over-year growth in transactions and purchases in February was strong across both debit and credit. Debit purchases increased by 7%, with the money services and goods sectors accounting for two-thirds of that growth. Credit purchases were up 4.4%, with the Goods and the Service sectors accounting for 68% of the entire increase. For February, debit transactions were up 7% and credit transactions rose by 4%.

• In its February 2026 results, the University of Michigan Index of Consumer Sentiment “essentially remained flat,” posting a 0.2-point gain to finish at 56.6 – down 13% year over year.

• The Conference Board reported consumer sentiment inched higher in the Consumer Confidence Index in February, up 2.2 points to 91.2.

• The Bureau of Labor Statistics (BLS) reported job growth fell in February, shedding 92,000 jobs, while the unemployment rate ticked up to 4.4%, or 7.5 million people. The Wall Street Journal poll of economists forecast 50,000 jobs added in February. February job losses were mainly in the healthcare sector.

• The February ADP jobs report, which tracks changes in U.S. private employment, reported an increase of 63,000 jobs. Growth centered on education and health services, adding 58,000 jobs. Employment in construction and information also increased during this period, whereas job declines were noted in the professional and business services and manufacturing sectors. The ADP payroll population represents 26 million U.S. private-sector employees.

• For February, the Bureau of Labor Statistics (BLS) reported a 0.3% increase in inflation, keeping the 12-month Consumer Price Index (CPI) steady at 2.4%. The largest contributor to the monthly increase was shelter, which was up 0.2%. Food increased by 0.4%, while energy increased by 0.6%. Core CPI, which excludes food and energy, rose 0.2% in February, finishing the month at the same rate as January at 2.5%. Categories contributing to the Core CPI increase included medical care, apparel, household furnishings and operations, airline fares and education.

• Gasoline prices have increased sharply, rising $0.57 per gallon (or 19%) since the start of the U.S./Israel war with Iran on Feb. 28. “It is unknown how long the market will experience higher energy prices because of the conflict or what the impact will be on the U.S. economy. As an informal calculation, each $10 increase in the price of a barrel of oil equates to a 0.2% increase (approximately) in inflation.”

Deep Dive: Delinquencies

David Knowles, SVP of disputes and collections operations at Velera and president of TriVerity, a Velera company.

"What we’re seeing in this month’s data is a reminder that delinquency trends don’t move in a straight line. Yes, overall delinquencies are up compared with a year ago, but the story underneath is more nuanced,” said David Knowles, SVP of disputes and collections operations at Velera and president of TriVerity, a Velera company, which offers a full-service first- and third-party collections solution built specifically for credit unions.

Since its last delinquency Deep Dive in February 2025, delinquencies have started trending upward after steadily declining for the first 10 months of last year. Overall credit card delinquencies for February 2025 were 2.66%, up 0.16% year-over-year. “This month’s performance was consistent with the upward trend in year-over-year delinquency rate growth observed over the last four months, in contrast with the previous ten months,” noted Velera in its report.

Additionally, Velera saw higher delinquency rates among younger age groups, as evidenced by the “notable increase” in the youngest generational segment (Younger Gen Z), up 10.67% year- -over-year to 13.69% in February 2026, up significantly from 3.02% in February 2025. The boomer-plus (oldest) population had the lowest delinquency rate for February 2025 at 1.63%.

While the year-over-year change in delinquencies was up 0.16%, the subprime credit score grouping (credit scores below 660) decreased 0.46% to 8.43% in February 2026, continuing the positive trend observed over the last year. In looking by generation over time, delinquency rates tend to decline as the population ages.

“Younger consumers are feeling the most strain, and lower income households continue to show sharper swings in both delinquencies and credit utilization,” Velera reported. “At the same time, subprime borrowers have been remarkably steady — something we wouldn’t have predicted a few years ago. Put together, it paints a picture of a consumer landscape that’s still adjusting to higher costs and shifting financial cushions, with very different experiences depending on age and income.”

What Should Credit Unions Do Now?

The Index recommended opportunities for credit unions such as:

Strengthen Collections to Better Manage Elevated Delinquencies

“As delinquency trends rise, especially among younger consumers, credit unions should prioritize modernizing their collections approach to enhance recovery and deepen member engagement,” suggests Velera. It recommends effective strategies include using multichannel outreach to maximize reach, personalizing communication by risk level and member segment, and adopting smarter technology to prioritize accounts and streamline resolution. “By combining tailored outreach, digital-first engagement and advanced analytics, credit unions can better manage elevated delinquencies while delivering a more supportive and efficient member experience.”

Outsource Delinquency Management to Improve Efficiency and Reduce Risk

“With increased pressure on internal staffing, training and technology resources, outsourcing delinquency management can help credit unions reduce operational burden, mitigate risk and ensure members receive professional, compliant and empathetic support.”

Boost Cardholder Engagement with Targeted Summer Usage Campaigns

“Velera’s targeted usage campaigns provide credit unions with an efficient, data driven way to influence member spending during key seasonal moments, most notably during summer travel season and Amazon’s peak July shopping period.”