“In the end, nobody that’s ever taken good care of the customer has ever lost; I mean that is the name of the game.”1 Those words from renowned businessman, Chairman and CEO of Berkshire Hathaway Warren Buffet should be instructive to financial institutions (FIs) struggling to regain and maintain profi tability amid a continuing economic storm.
For credit card issuing FIs, managing cardholder disputes is an essential part of providing excellent customer service. Indeed, it is becoming increasingly important as banks are forced to turn to their already hard hit customers to bolster profi ts through higher fees and interest rates — practices that are being looked upon unfavorably by consumers and government regulators. The resulting negative perceptions toward the fi nancial sector could potentially lead to decreased customer loyalty and, ultimately, hurt FIs’ top line growth in an already tough business climate. At the same time, a tsunami of issues — economic contraction, new legislation addressing credit card lending practices, a rise in consumers making minimum payments, a slow down in new account openings and unprecedented delinquency rates — has enveloped the industry, compressing FIs’ potential profi t margins traditionally generated from extending credit, interchange fees and interest charges.
Dispute Resolution: Don’t Go It Alone
Timely Resolution of Customer Disputes Improves Account Retention and Profits
TSYS Dispute Resolution (U.S.)
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