Credit Card Customer Service Is Critical to Attracting Customers Says New Study

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Last updated on February 20th, 2024

Credit cards are an essential part of everyday life for millions of Americans. With credit cards comes the need for customer service, due to fraud, mistakes, and other issues. A new study highlights just how vital credit card customer service is – and how it can actually entice consumers to change their card preferences.

Credit Cards and Customer Service

According to research from the payment industry website, PYMNTS, better customer service may be the key to luring new customers from their current credit card to a new credit card offer. Data shows that approximately 28% of consumers would seriously consider changing cards to a company with excellent customer service.

Millennials are the age group most likely to switch allegiances based on good customer service. The study found that 43% of millennials are “extremely likely” to switch to a company with excellent customer service.

The study, Delivering Cardholder Customer Service Report, also indicates that the most pressing issues customers face with customer service include billing and statement questions, fraud, and other serious concerns. In addition, 80.9% of consumers contact representatives via phone, surpassing chat and email significantly. Those who felt their experience was handled poorly were most likely to say they’d consider switching card issuers.

Customer Service and Coronavirus

Due to the coronavirus pandemic, customer service has taken on a new dimension. Keeping customers up-to-date with relevant information is just one facet of retaining cardholders. No sector of the credit card space has struggled more due to COVID-19 than airline rewards customers.

Due to a severe decline in air travel, many airlines are struggling to retain cardholders. As a result, some, like United, are changing the ways users can spend miles. This includes helping them offset the high annual fees that come with membership for their cards. 

Discover Is an Example of Customer Service Excellence

When discussing customer service, the first name that often pops up is Discover. Discover is known for its exceptional customer service, offering U.S.-based representatives and fast, courteous service. The quality of their customer care continuously gains praise. The company also frequently ranks highest in customer satisfaction by J.D. Power & Associates.

Maintaining Customer Satisfaction Is Critical

Regardless of the means, it’s certain that customer service will play a critical role in how companies attract new consumers well into the future. From coronavirus relief to unique distractions to special rewards, keeping the customer happy takes a lot of effort. But it’s effort that pays long-term dividends.

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About: Cory Santos
Cory Santos

Cory is the senior credit card editor at BestCards, specializing in everything credit card-related. He’s worked extensively with credit cards and other personal finance topics, including nearly five years at BestCards. Cory’s extensive knowledge is an essential part of the BestCards experience, helping readers to live their best financial lives with up-to-date insights and comprehensive coverage of all facets of the credit card space, including market trends, rewards guides, credit advice, and comprehensive credit card reviews.

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