Customer Satisfaction and Problems Encou

IRJMSH Vol 10 Issue 2 [Year 2019] ISSN 2277 – 9809 (0nline) 2348–9359 (Print)
CUSTOMER SATISFACTION AND PROBLEMS ENCOUNTERED BY PLASTIC

CARD HOLDERS : A REVIEW BASED STUDY
NIMRAT KAUR
INTRODUCTION
Plastic cards play an important role and a step forward towards inclusive growth. It leads to
economic development of the disadvantaged. It is also considered to be a one of the good
business opportunity for the banking institutions of the country, thus helps in penetrating into
unbanked areas and earning profits. This is a plan of the Reserve Bank of India and its main
objective is to bring people into the parameters of banking which were prior excluded from the
ambit of financial institutions. The Reserve Bank has taken initiatives to develop plastic money
as the leading source of payments and withdrawal. The Committee, under the supervision of
Chairmanship of Dr. K.C. Chakrabarty, is helping FIs to formulate good sustainable plans for
banking services which will focus on affordable and easily adaptable services for the excluded
disadvantaged citizens of India towards plastic money. With the progress of the Indian economy,
especially when the focus is on the achievement of sustainable development. Though
introduction of banking technologies brought a change in the urban society, a majority of the
rural population is still unaware of these changes and is excluded from plastic money
advantages. It was considered important to initiate financial literacy among the people, Reserve
Bank started several programs with the help of different commercial banks of India. Deployment
of ATMs by different financial institution have been a step forward towards inclusive growth.
Now a days plastic money play a key role in interactions with the world. The services they
provide helps users to communicate with their bank. Rather than being a necessary cost of doing
business, plastic money can be viewed as a means of enhancing customer satisfaction and a
potential source of reaching the masses. In the current economic environment, however, some
banks have been reluctant to make the investment necessary to refresh their networks. In some
instances, plans to refresh the network have been put on hold as banks feel the need to conserve
capital. plastic money helps in providing better convenience for the existing customers and a
better infrastructure for financial inclusion. Based on Bank clientage and plastic money
Deployment in India segregating them region as urban and rural areas. The present research
paper is an effort towards the customer satisfaction and the various problems been encountered
by the plastic card holders.
International Research Journal of Management Sociology & Humanity ( IRJMSH ) Page 154
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REVIEW OF LITERATURE
A number of studies have been conducted on both national and international level to measure the
level of customer satisfaction and the problems been faced by the plastic card holders , this paper
will summarize the studies in a tabular form as depicted in table 1 in brief.
Summarized Review of Literature

TABLE 1
Sr.no Authors Objectives/scope Data base and Data analyzing Findings
methodology technique
1 Parvin , A and The aim of the 200 respondents descriptive The findings of the study
Hossain , S study was to were selected statistics. revealed that respondents
(2010) measure the level from nine are using debit cards.
of satisfaction with commercial Whereas a fall in the
respect to debit card banks in khulna usage was seen with the
users in different city with the help rise in age and higher
private commercial of a suitable educational level. On the
banks and to trace questionnaire to other hand, debit card
the problems faced extract data. usage is reported to be
by the cardholders. higher in case of cash
Further to withdrawals than
recommend some purchasing.
policy for better
service delivery and
to retain its
cardholders.
2 Simon , L.M The study focused Sample Percentage 1. Majority cardholders

(2012) on the satisfaction, constituted of analysis and constitutes males.
awareness and 150 respondents Chi square 2. Maximum cardholders
usage level of debit in Coimbatore technique lie in the age group of
card holders in city with the help 30-40.
private sector banks of probabilistic 3. Most of the cardholders
and to identify sampling are post graduate and
problems faced by method. employed, with an annual
the cardholders. income of 75000-100000.
4. Majority cardholders
posses there saving acc in
private banks.
5. Much of the debit card
usage is within the city.
6. Cardholders reported
their satisfaction with the
working conditions of the
bank and their annual
charges.
3 Islam, M The main objective 200 Descriptive Study found out that
(2015) of the study is to questionnaire technique, z test security, personal
determine various were filled from and ANOVA identification number,
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factors which ATM card cost and fee charges, cash

influence customer holders from in ATM , user friendly
satisfaction on sylhet city ATMs play a vital role in
ATM services in Bangladesh customer satisfaction
Bangladesh. where as a considerable
amount of users were
unsatisfied with number
of ATM booths .
4 Premlatha, J.R The study focuses A sample of 200 Percentages and It was seen that ATM is
And Sharma, on the performance bank customers chi square test considered to an essential
A.K , satisfaction and have been part of the customers
(2012) problems faced by extracted from modern life , where as it
bank customers in Vellore district, was also analyzed that
relation to ATM Tamilnadu India customers are highly
services. with the help of satisfied with number of
questionnaire. ATM available, note
denomination from ATM
, withdrawal limit,
security, user friendly
ATM, the instructions
given by the banks to
operate ATMs and the
actions taken by the
concerned bank when the
ATM card is stuck in the
machine. on the other
hand side a line of
dissatisfaction was seen in
case of no cash in the
ATMs.
5 Chowdhury, The main objective A survey of 100 Descriptive The study revealed that
R.S of the study are respondents were technique most of the respondents
(2016) satisfaction level done out of 11 are satisfied by the 11
and problems faced selected bank factor scale which was
by debit card from Bangladesh developed by the
holders in Sylhet with the help of a researcher on the contrary
city Bangladesh. questionnaire, customers were facing
cluster sampling problem in case of small
and random denomination of notes,
sampling , availability of ATM
methods were booths and card
used to extract replacement process .
the sample.
6 Yilmz, V The basic aim of the A sample of 370 SEM It was found out that
(2013) study is to analysis credit perception play a
the level of cardholders were considerable role in
satisfaction and selected from customer loyalty and
loyalty with respect shopping malls satisfaction where as it
to the perception of of Eskisehir city was observed that
credit card holders . with the help of a customers complaints
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questionnaire . should be taken onto

account and their feelings
and thoughts should be
interviewed on short
interval .
7 Bishnoi, S The objective of the 220 respondents Descriptive 1. It was found out that
(2013) study is firstly to were selected statistics, t - test gender, occupation and
find out the reason with the help of and f - test educational level have a
for ATM usage and an questionnaire significant association
problems faced from different with 'no extra cost from
while using ATMs ATMs in Delhi, bank side', where as
and secondly to Gurgaon and annual income have no
examine Faridabad. association with ATM
relationship services.
between ATM 2. it was observed that
services and education and annual
demographic income have a association
variables. with shopping at POS,
fuel stations and donation
and charity, on the other
hand mobile recharge,
stocks and mutual funds ,
transfer funds are
associated with
occupation.
3. the problems faced by
all the respondents while
usage was ATM machine
out of cash, no printing of
statement, ATM out of
order and poor visibility
of ink.
8 Simon, l.m The objectives of Random Percentages and It was observed that there
and saravanan, the study was to sampling chi square is a negative association
s analysis the level of technique was between age, sex,
(2012) awareness, attitude, used and education and occupation
usage , satisfaction extracted 200 with credit card holding
of SBI credit card respondents with where as a positive
holders in the help of a relationship was seen
Coimbatore city and questionnaire. between income and
to give suggestions credit card holding.
to increase
efficiency of card
schemes.
9 Verma, k To study the level 40 bank Descriptive Results indicated that the
(2014) of customer customer s were statistics, level of satisfaction in
satisfaction by taken with help percentage case of safety , security,
comparing union of convenient method and delivery of card, location
bank of India and sampling ranking method. of ATM, directions to use
yes bank on the method, data was ATM , availability of
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basis of ATM collected with cash, quality f currency,

services. the help of a availability of complaint
questionnaire. book, power backup
facility were high in case
of union bank of India
than yes bank. on the
other hand side yes bank
had a high level of
satisfaction in case of
working keypad of ATM,
ATM slip, number of
ATM than union bank of
India.on the contrary
respondents are
dissatisfied with both the
banks in case of poor
grievance redressal.
10 Singh, S and The study focused A sample of 360 Descriptive A significant difference
Komal on the ATM respondents were statistics and F can be seen between the
(2009) facilities, different selected which test three banks in case of
factors for ATM included 120 customer satisfaction, SBI
selection, level of respondents from have the highest level of
satisfaction , each bank satisfaction followed by
problem faced by namely SBI, ICICI and HDFC in case
the customers of ICICI, HDFC of fee charged, problems
SBI, HDFC and bank. data was faced, post purchase
ICICI banks gathered with the behavior and mini
help of a statement. whereas HDFC
questionnaire. followed by ICICI and
SBI have high satisfaction
in case of efficiency and
performance.
11 Pahwa, M.S To study the level A sample of 120 Descriptive level of satisfaction was
and Saxena, K of satisfaction in ICICI ATM statistics measured to be high in
(2011) relation to ICICI users were case of ATM card
ATMs in Udaipur selected on delivery, availability of
city random basis in cash , quality of notes in
Udaipur, a well ATM machine , cash
structured withdrawn, safety and
questionnaire security, where as the
was used to level of dissatisfaction
collect data. was seen in case of power
back, location of ATM
and non availability of
compliant book .
Chattopadhay, The objective of the A sample of 300 Chi square and It is observed that there is
12 P and research paper is to respondents were descriptive an increase in the usage of
Saralelimath, study the awareness selected from statistics ATM ,prepaid mobile
S and preference to three cooperative recharges and bill
(2012) use ATM and banks namely payment is the most used
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problems faced vishweshwar services. the long waiting

while using ATM sahakari bank queues in ATMs are the
for selected ltd., thane janata basic problem faced by
cooperative banks sahakari bank ltd. the customers . whereas
in Pune. and abhyudaya inadequate cash
cooperative bank management and poor
ltd. a well forecasting of day to day
structured cash requirement was
questionnaire observed on the part of
was used to the banks.
extract data.
13 Sumi, F.R and The aim of the A survey of 68 Descriptive It was seen that
Safiullah, A.B study is to analysis plastic statistics respondents who are
(2014) the adoption and cardholders from professionals and
usage of plastic Dhaka have been administrators are the
money, to determine conducted with highest users of debit
different factors of help of non card, on the other hand
adoption and to list probability side females use debit
down the problems convenience cards more than males but
faces by plastic card sampling in case of credit card a
users in Bangladesh. technique by vica versa scenario is
using a well observed. the study
structured revealed that 40 % of the
questionnaire. users use plastic card 1-2
a week on the other side
30 % use them more than
four times a week .
Problems faced by the
card holders are
unavailability of cash,
unavailability of receipt
will withdrawal, where as
a small proportion of
users faced problems like
fake notes, non
availability of small
denomination of notes.
14 Deviranjitham, The main focus of 500 credit card Descriptive It was inferred that there
S and the study was to holders were statistics and chi is a significant
Thamilarasan, analysis the extracted from square test relationship between type
S awareness, ICICI bank, SBI of account, number of
(2014) perception, bank, HDFC years holding account and
satisfaction, usage bank and AXIS monthly family
and factors which bank in expenditure with credit
mobilize usage of Krishnagiri card usage, where as
credit cards in district. younger generation (31-
Krishnagiri district. 40 yrs) results to high
usage ,on the other hand
side males have a greater
usage then females.
according to marital
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status married people

resulted in higher usage
,employees shows to have
a greater usage then
professionals and
teachers.
15 Kamaran,C To study the level 120 ICICI ATM Descriptive satisfaction resulted to be
(2011) of satisfaction holders from statistics( WAS) higher in case of card
among ICICI ATM Krishnagiri delivery, availability of
users in Krishnagiri district were cash in machine , quality
district. taken to of notes in ATM booths ,
formulate the cash withdrawn from
sample of the ATM booth, safety and
study by using a security, where as
questionnaire. dissatisfaction was
measured in cases like
power back to ATM
machines, location of
ATM booth and non
availability of compliant
book in ATM booth .
16 Thakur, A and The aim of the A well structured Z test and it was observed that ATM
Geete, V survey is to analysis questionnaire descriptive and credit card holders
(2014) the satisfaction and was statistics were satisfied with the
banks redressals for administrated on SBI services in Indore,
queries among SBI a sample of 50 where as the survey
ATM / credit card SBI card holders showed that the level of
users in Indore city, in Indore city. satisfaction was so high
India. that non of the cardholder
had encountered any
problem related to non
functionality of ATM
machines. on the other
hand side it was seen that
bank had a proper
redressal for quires
related to cardholders .
17 Prabhu, A.B The main objective Anova, chi The main reason of usage
(2014) of the survey is to square, was ease in purchase,
analysis the types of kolmogorov convenience and the
credit card, factors smirniv test and problem analyzed will
influencing the weighted average usage was high charge. it
usage, problems was observed that there is
faced, the factors a significant association
that influence to age, occupation and
prefer credit cards education with type of
in kanayakumari credit card and
district. insignificant relation was
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observed between income

and gender with types of
credit card, a positive
association was seen
between monthly income
and monthly amount for
usage by credit card. on
the other hand side a
significant association
was seen between
convenient, status
symbol, cash less
shopping, ticket booking
and useful at the time of
emergency with
preference to use credit
card.
18 Khalid, J ; The purpose of the A sample of 159 Descriptive A significant association

et.al survey is to study respondents both statistics, was seen between
(2013) users and non users card adopter and correlation and t demographic factors and
of credit card, usage non adopters test. perception with the usage
rate, to find out were selected sand adoption of credit
different factors for from Bahawalpur card and barriers were
low adoption and district with the found out to be additional
different barriers in help of a charges, high interest rate
usage in Pakistan questionnaire. and insufficient credit
limit.
19 Joy, A The focus of the A sample of 100 Percentages and It was analyzed that there
(2015) study was to credit card chi square is a significant association
analysis the nature holders were between annual income
and type of cards selected for the on frequency of usage
owned and to study survey from where as no association
the level of Kottayan district can be seen between type
awareness, for analyzing of card and problems
preference, with the help of faced and an insignificant
frequency of usage an questionnaire relation was seen between
and the problems using qualification and hidden
faced by the credit convenience bank charges. the results
card holders sampling revealed that majority of
method. the users were male,
married people, age ( 30-
60)yrs and belonged to
urban area followed by
sub - urban area. it was
observed that the source
of information was
advertisement followed
by friends and relatives,
mater card is highly used
followed by visa card and
the results showed that
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majority respondents
don't use credit cards for
online shopping because
they find it to be risky.
20 Bedia, D.D To analysis the A sample of 300 Anova , chi There is a significant
and Malik, S impact of net respondents was square and association between
banking with extracted from 6 descriptive demographic variables
reference to credit private, public statistics. and credit limit, payment
cards in selected and foreign updation, bank
banks of madhya banks (50 information regarding
pradesh, to examine respondents each credit card policies,
customer bank) data was keeping cash away and
satisfaction in collected with credit card fraud where as
relation credit card well structured no association was seen
services with questionnaire. between area and credit
demographics and card services.
location. to study
the perception in
relation to credit
limit and credit card
fraud and to
analysis the
satisfaction level of
payment updation
and statement
generation in case
of credit cards.
FINDINGS OF LITERATURE REVIEWED - AN ANALYSIS
 Islam, M (2015), Premlatha, J.R And Sharma, A.K(2012), Verma, k(2014),Pahwa, M.S
and Saxena, K(2011) and Kamaran,C(2011) found out that safety, security and user
friendly was the main reasons for the adoption and satisfaction of card holders towards
plastic money.
 Joy, A(2015), Deviranjitham, S and Thamilarasan, S(2014)and Parvin , A and Hossain , S
(2010) reveilved that the major usage of plastic money was performed by the males
where as Sumi, F.R and Safiullah, A.B(2014) found out that majority transactions are
performed by female members of the society, but the finding may differ because Sumi,
F.R and Safiullah, A.B(2014) was an international study .
 Deviranjitham, S and Thamilarasan, S(2014)and Parvin , A and Hossain , S (2010) and
Simon , L.M (2012) studied that major usage of the plastic money was performed by the
age gap of 30-40 years that means higher the age a fall was seen in the satisfaction of the
usage of card holders where as Joy, A(2015) observed the age gap between 30-60 years.
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 It was observed that there is a negative relationship between age, sex, education and
occupation with credit card holders where as a positive association was noticed between
income and credit card holding by Simon, l.m and saravanan, s (2012).
 A signification relation was observed by Bedia, D.D and Malik, S, Prabhu, A.B(2014)
andchattopadhay, P and Saralelimath, S(2012) between customer satisfaction and mobile
payments ,bill payments etc within plastic card holders.
 Premlatha, J.R And Sharma, A.K(2012) explored that plastic money have become an
essential part of modern day to day life and majority customers are reliable on it as it is
easily assessable.
 Parvin , A and Hossain , S (2010) focused mainly on the customer satisfaction towards
annual charges and the working conditions of plastic money and found out that plastic
money is used more at time of withdrawal of money than purchases.
 Customer grievance cell of the banking system is not up to mark as the major problem
been faced by the customers are lack of feedback , poor visibility on the machines, lack
of cash and power backup in the ATM machines.
CONCLUSION
The above findings underline that customer satisfaction in plastic card holders and their usage
are positively and directly related to each other weather we compare them on the bases of
demographic features or measure them with the help of different scales . If the card holder is
satisfied by the services and the usage of card it will lead to a better economy and will streamline
the money circulation in the country and may lead to a cash less economy in the future where as
a dissatisfied cardholder will not promote its usage and will spoil the reputation of banks.
Therefore the banking industry of the country should always make an effort to provide a proper
grievance to the dissatisfied customer and start up with more and work public workshops to
enhance the adoption of the plastic cards in the society. It have been observed in the above
stated studies that banks have deployed special grievance cell but the services provided by them
are not meeting the bench marks of the customer, it should be noted by the banks that a satisfied
customer is an asset for the industry .
SCOPE FOR FUTURE STUDY

 A rigorous effort was made to find out a comparative study on the social
background(urban or rural) of the plastic card holder, beside all the demographic features
are discussed in the reviewed studies but no focus is laid down on their social
backgrounds.
 A scope can be seen on a comparative study weather customers are satisfied with public
sector or private sector banks in association to their adoption of plastic cards
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 Every scale used by the researcher is different for measuring the level of satisfaction
which leads to different findings , a inter comparison of scales can also be performed.
REFERENCES:
 Parvin , Afroza ; Hossain , Shajahan (2010) “Satisfaction of Debit Card Users in

Bangladesh: A Study on Some Private Commercial Banks , Volume– V, Issue– 02, July-
December, 2010
 Simon, linda Mary ( October 2012 ),“A Study on Customer Satisfaction towards Debit
Card Services Provided By Private Sector Bank With Special Reference to Coimbatore
City”, Volume : 1 ,Issue : 10
 Bishnoi, Sunita (June 2013), “An Empirical Study of Customers' Perception Regarding
automated Teller Machine in Delhi and NCR”, Integral Review- A Journal of
Management , p-ISSN : 0974-8032, e- ISSN : 2278-6120, Vol. 6 No. 1, June 2013, pp 47
– 60 .
 Borzekowski, Ron; Kiser Elizabeth, and Ahmed, Shaista (2006), “Consumer Behavior
and Payment Choice”, Discussion by Robert M. Hunt, 2nd edition, Federal Reserve Bank
of Boston, July 26
 Islam,Tajul (2015)," Customer Satisfaction and ATM Services : The Case of
Bangladesh", Vol.5.No.3, Pp 121-139.
 Premlatha, J.R And Sharma, A. (2012)," A Study Of The Factors Affecting Customer
Satisfaction For ATM Services In Vellore District", Vol.1 No.3, ISSN 22773622.
 Chowdhury, R.S (2016)," Satisfaction Of Debit Card Users In Bangladesh : A Study On
Sylhet City" Vol.4 Issue 1, ISSN 23218916.
 Yilmz, V (2013)," Effect Of Perception Relating To Credit Cards On Customer
Satisfaction And Loyalty", Vol.2, Issue 6, Pp 13-21, ISSN 22783369.
 Bishnoi, S (2013), " An Emperial Study Of Customers Perception Regarding Automated
Teller Machine In Delhi And NCR ", Vol. 6,No. 1,Pp. 47-60, ISSN 22786120.
 Simon, l.m and saravanan, s (2012) "A Study On Customers Satisfaction Towards Credit
Card Services Provided By State Bank Of India, With Special Reference To Coimbatore
City" Vol. 2,Issue. 2, ISSN 2249555X.
 Verma, K (2014) "Measuring Customer Satisfaction Towards ATM Services - A
Comparative Study Of Union Bank Of India And Yes Bank ", Vol.3,Issue.7, ISSN
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 Singh, S and Komal (2009)" Impact Of ATM On Customer Satisfaction ( A Comparative
Study of SBI, ICICI AND HDFC Bank)", vol. 2 no.2.
 Pahwa, M.S and Saxena, K (2011) " Analytical study of customer satisfaction at ICICI
bank with special reference to ATM" vol. 12.
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IRJMSH Vol 10 Issue 2 [Year 2019] ISSN 2277 – 9809 (0nline) 2348–9359 (Print)

CUSTOMER SATISFACTION AND PROBLEMS ENCOUNTERED BY PLASTIC

Summarized Review of Literature

2 Simon , L.M The study focused Sample Percentage 1. Majority cardholders

factors which ATM card cost and fee charges, cash

questionnaire . should be taken onto

basis of ATM collected with cash, quality f currency,

problems faced vishweshwar services. the long waiting

status married people

observed between income

18 Khalid, J ; The purpose of the A sample of 159 Descriptive A significant association

FINDINGS OF LITERATURE REVIEWED - AN ANALYSIS

SCOPE FOR FUTURE STUDY

 Parvin , Afroza ; Hossain , Shajahan (2010) “Satisfaction of Debit Card Users in

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