Half of all Irish credit card users have no idea they pay an annual government duty of £15 (€19) for each credit card they own. This was one of the more surprising findings of a survey carried out by Europay International, MasterCard's European strategic partner.

Among the under-25 age group, 71 per cent were unaware of the tax. The survey was conducted among a representative sample of 500 credit card holders.

The survey identified differences in spending habits and attitudes towards borrowing between younger and older age groups. Irish consumers are known to be fairly cautious with credit card debt and this is backed up by the survey results. Two-thirds of those surveyed clear the full balance on their card each month. This is particularly true of the over-55 age group, 84 per cent of whom clear their monthly statement.

The under-25s saw their credit card balance increase over the last year. Overall, 34 per cent of respondents had higher balances this year, but 46 per cent of under- 25s have seen their spending levels rise in the past 12 months.

There has been a marked growth in spending on credit cards in the Republic in recent years. Mr Brian Moore of Europay said Irish spending had increased by more than 120 per cent since 1998.

Younger age groups prefer using debit cards, with 52 per cent of under-35s using them more than 10 times per month, compared to 30 per cent of over 35s. Older age groups use credit cards most - 26 per cent use their cards more than 10 times per month.

Europay asked the cardholders why they were using credit cards: only 8 per cent cited the benefits of interest-free credit as a reason for using the payment method.