If consumers lack a better way to track their funds, there's the potential for issuers' inbound telephone call volume and related costs to soar. The upside for issuers is that this also offers them a new product or service opportunity. The BAIGlobal studies also uncovered consumer confusion where issuers had converted private label ATM cards to branded debit cards using the VISA or MasterCard logo. In fact, two thirds of newly mailed debit cards carried one of these logos, the studies revealed. Cardholders have an adjustment to make when they see these brands now on debit cards.
Issuers have to be especially careful to explain the distinction.
Despite problems within the debit card marketplace, opportunity for the industry's growth exists, the BAIGlobal studies highlighted. While debit cards penetrated nearly two of three households, cards are linked to only one third of all the household's financial accounts, meaning debit cards have the potential to be linked to other accounts. If consumers take on one debit card for each relationship, the 'share of wallet' devoted to debit cards can increase greatly. Founded in 1969, BAIGlobal is a full-service, international market research firm. Its clients include a broad list of major companies and financial institutions in the U.S. and around the world.