Many credit card customers say extra features such as zero liability for fraudulent charges, emergency card replacement, free identity-theft management tools, and reimbursement for stolen or damaged items are important.
But while cardholders generally are aware the issuer of their primary credit card offers these services, many never use them. And a fair number run into obstacles when trying to take advantage of extra features, according to new research from Auriemma Consulting Group.
For its monthly Cardbeat report, Auriemma surveyed 419 U.S. credit card customers online in November. Auriemma contends issuers bury extra features as bullet points in direct mail card offers, so they do not get the desired promotional benefits.
“There may be an opportunity for some of these more-peripheral benefits to be marketed more aggressively to consumers in a way that may aid card acquisition,” writes Nancy Stahl, Cardbeat editor.
Some 77% of survey respondents said they are aware they can pay their primary credit card bill online, and 58% had done so. Some 59% of respondents’ issuers provide additional cards for family members if requested, and 29% had made such requests. Half of respondents said their cards offer zero liability for fraudulent charges, and 15% had used that feature. Some 26% said their issuer reimburses for stolen or damaged items within 90 days of purchase with the card, and 4% had used that feature. Some 17% said their issuer offers extended manufacturer warranties on items purchased with their card, and 5% had used that feature.
Among the most-desired credit card features, respondents ranked zero liability for fraudulent charges first (69%), followed by the ability to pay their credit card bills online (59%) and emergency card replacement (36%). Reimbursement for lost, damaged or stolen luggage ranked near the bottom of most-desired card features (10%), followed by special access to concerts and local events (6%) and concierge services such as travel planning (3%).
Many respondents said there was a catch when they tried to use certain offered features. Problems included the inability to bypass foreign exchange fees (24%), obtain a free credit score (23%), redeem merchant coupons (18%), obtain reimbursement for lost or stolen luggage, and collect on trip costs after emergency cancellation (13%).
The credit card market has seen past success when repositioning existing benefits as new card features, Stahl contends.
“We believe there may be an opportunity for issuers to turn at least one of these existing benefits into a flagship offering,” which could provide brand differentiation and portfolio growth, Stahl says, cautioning, however, that any such offerings must be positioned as unusual and valuable.
