Technological advancements in the payments industry have made transactions easy, fast and seamless. Consumers can gain more control over their finances by viewing balances, managing transactions and receiving alerts in real-time on the banking app. But what happens and who do you contact when something goes wrong?Many Cash App users have encountered this problem exact question On June 26, 2023, they discovered they had been charged double charges on their Cash Card. To make matters worse, Cash App’s in-app and phone support systems were shut down the same day, leaving panicked customers wondering where to turn for help.
Historically, most customers had checking accounts and debit cards with local banks. They can easily visit a branch or call customer service (24/7) for immediate assistance with any account issues such as double charges. Today, more and more fintech companies offer similar banking products, but without the same level of customer service. Fintech companies do not have physical branches and typically do not offer 24/7 customer support via phone or chat. This presents a growing problem considering fintech is booming in the post-pandemic world.
Fintech companies must prioritize customer service for their innovative digital banking applications. With more than 44 million monthly verified users, Cash App started out as a P2P payment app and later added “Cash Card” – a debit card tied to a Cash App account balance. They also launched investment features for stocks and Bitcoin. While fintech companies like Cash App offer many unique and convenient features, they may lack some valuable services offered by traditional banks, including human on-demand customer support.
After frustrated Cash card users caused an uproar on Twitter, the Cash App posted a tweet a day later explaining that they had discovered a technical glitch that was causing double charges. Affected customers will be notified and refunded. But some damage has been done in the past 24 hours. Cash card holders instinctively go straight to the merchant and accuse them of double charging. Merchants have no recourse as customer complaints soar. A hotel employee tweeted: “Two guests called me because they showed double the amount I charged them from their account. I have confirmed through CC Processor that I was charged Correct amount. Please assist.” Although Cash App later took responsibility for the double charge, they did not provide any damage control directly to the merchant who was angry with customers. Any negative customer experience, especially for a merchant, can lead to losing a customer forever.
“Merchants say it’s a Cash App issue and you guys have sent notifications to customers, but I haven’t had any such communication,” one Cash Card holder tweeted. Inner Mongolia is in the dark. When customers have account issues, they prefer quick, detailed information.
There is a lot of room for improvement in the customer service provided by fintech companies. Cash App failed this week, but it could serve as a lesson for fintech peers. As fintech companies continue to roll out new flashy features, customer service must be improved and prioritized.
overview Sofia GonzalezResearch Analyst, Debit Advisory Services, Javelin Strategy & Research.