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Insights and Expertise

Give customers credit, Financial health versus satisfaction rates

but not too much The J.D. Power study found differing satisfaction rates
among transactors and revolvers, Cabell noted, with
financially healthy customers more satisfied with service
charges, interest rates, credit limits and membership fees.
Revolvers, on the other hand, were less satisfied with
credit limits and account management and were more
likely to have used buy now, pay later (BNPL).

"In the study, 40 to 50 percent of revolvers said they would
probably or definitely use BNPL from another lender,
compared to only 23 percent of transactors," Cabell said.
"That's a big difference; we saw an uptick in average debt
and use of BNPL and card payment plans, which are not
technically buy now, pay later but rather post-sale offers
from issuers."

By Dale S. Laszig In-house versus third-party BNPL
DSL Direct Cabell pointed out that the J.D. Power study distinguished

Give credit to whom credit due," wrote Samuel between BNPL and card issuer plans to understand who
Adams on Oct. 29, 1777, in a letter to John Adams, was defecting from credit card issuers to third-party
commemorating Saratoga, a defining victory in the BNPL providers and who used issuers' post-sale plans.
" American Revolution. The idea of acknowledging Researchers found 12 percent of consumers used a card
our helpers, even when we don't like them or agree with payment plan that was part of their credit card, and 20
them, could also apply to banks that undervalue on-time- percent used BNPL from another lender over the past year.
paying customers. These customers, known as "transac-
tors" and "deadbeats" in the trade, don't pay interest on Bryce Deeney, CEO of equipifi, a BNPL provider for banks
revolving accounts, but they help card issuers win in and credit unions, believes their established relationships
other important ways, according to a recent study. with customers give financial institutions a distinct
advantage over third-party BNPL providers. "Their BNPL
The J.D. Power 2025 U.S. Credit Card Satisfaction Study, programs can be more personalized and financially
published Aug. 14, 2025, found transactors more satisfied informed," he said. "Approval is simpler, funds are
with card brands than "revolvers" who carry balances deposited faster, and everything works through the debit
(see www.jdpower.com/business/credit-card-consumer- card and checking account the customer already uses."
insights). The study polled 37,293 credit card customers Enlightened versus opportunistic lending
between June 2024 and June 2025 and found credit card
transactors with no revolving debt were 4 points more Cabell acknowledged the fine balance between providing
satisfied than the previous year. access to credit and providing too much access. "A person's
status can change very quickly, perhaps by losing a job
Transactors versus revolvers or facing a big medical expense," he said. "Any number of

John Cabell, managing director of payments intelligence things can turn a person's finances sideways, and that's
at J.D. Power, shared pros and cons associated with each when a credit card can be a great assistance or worsen
customer segment, as follows: financials."
• Revolvers: "Customers who have debt are paying Deeney agreed, stating debit cards reduce risk by limiting
interest but also present risk of default and financial credit access to available funds. "Banks and credit unions
stress, so that revenue positive for the issuer is a are unlocking installment capabilities on debit cards and
drain on satisfaction for the customer, who may be BNPL companies are racing to launch debit products," he
less likely to refer business or to be an asset in the said. "Last year, we saw FI BNPL usage grow and often
issuer's portfolio." overtake all third-party BNPL providers combined in a
few months; this year, JD Power found that consumers
• Transactors: "Customers who don't pay interest remain slightly more satisfied with BNPL from their
[on account balances] bring higher monthly spend financial institution than from a fintech."
to the products they purchase and generate more Dale S. Laszig, content strategy director at The Green Sheet and founder
interchange revenue for issuers. They also bring
other types of business to the relationship that can and CEO at DSL Direct, is a payments industry journalist, creator and
be net positive by being high annual fee payers and consultant. Connect via email at dale@dsldirectllc.com and LinkedIn at
deposit account holders." www.linkedin.com/in/dalelaszig.
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