Usage, Awareness, and Satisfaction of Customers Towards Credit Card Services Offered by Banks

Abstract

The present study examines the awareness, usage, and satisfaction levels of customers regarding credit card services offered by banks, with special reference to Bihar, Jharkhand, and Uttar Pradesh. In recent years, credit cards have become an integral part of modern banking and have significantly transformed financial transaction practices. With the expansion of digital banking, online shopping, and cashless payment systems, credit card usage has increased considerably. A credit card, often referred to as plastic money, enables users to purchase goods and services without immediate payment, based on the “use now, pay later” concept. These cards offer several advantages, including convenience, seamless transactions, reward points, discounts, and flexible repayment options. However, users may encounter challenges such as hidden charges, high interest rates, and the risk of debt accumulation if not used prudently. Therefore, it is essential for banks to understand customers’ satisfaction levels and experiences with credit card services.
The primary objective of this study is to analyse customer satisfaction among respondents and identify the factors influencing their satisfaction with banking services. It further examines user preferences, behavioural patterns, and challenges associated with card usage. A descriptive research design has been adopted, and primary data were collected through a structured questionnaire. A total of 55 respondents were randomly selected from different banks across Northern India. Customer satisfaction was evaluated across five dimensions: product quality, service quality, convenience, trust, and value-added services. Additionally, aspects such as security, customer support, fees, and reward schemes were examined.
The findings indicate that a majority of respondents report positive perceptions of the convenience and benefits associated with credit cards. However, concerns such as hidden charges, lack of transparency, security issues, and delayed customer service responses remain significant. The findings suggest that banks should focus on enhancing service quality, improving transparency, strengthening security features, and offering efficient customer support. Such measures can improve customer satisfaction, foster trust, and promote long-term relationships. The findings may assist researchers, policymakers, and financial institutions in understanding consumer behaviour and improving credit card services in the evolving digital banking landscape.