Technological advances in the payments industry enable convenient, quick, and seamless transactions. Consumers can view balances, manage transactions, and receive alerts in real time on their banking apps, allowing them to have more control over their finances. But what happens and who do you contact when there’s a problem? Many Cash App users faced this exact question when they discovered duplicate charges on their Cash Card on June 26, 2023. To make the matter worse, Cash App’s in-app and phone support systems were also down on the same day, leaving startled customers unsure where to seek help.
Historically, most customers have checking accounts and debit cards with their local banks. They could easily visit a branch or call customer service 24/7 for immediate assistance with any account issues, such as a duplicate charge. Today, more fintechs offer similar banking products but without the same level of customer service. Fintechs do not have physical branches and often do not provide 24/7 customer support via phone or chat. This poses a growing problem, considering fintechs are flourishing in the post-pandemic world.
Fintechs must prioritize customer service for their innovative digital banking apps. With over 44 million verified monthly users, Cash App started as a P2P payment app and later added “Cash Card”—a debit card tied to a Cash App account balance. They also rolled out an investment feature for stocks and Bitcoin. While fintechs like Cash App offer a lot of unique and convenient features, they can lack some of the valuable services that traditional banks provide, including human on-demand customer support.
After an uproar on Twitter from frustrated Cash Card users, Cash App posted a tweet a day later, explaining they had discovered a technical glitch causing duplicate charges. Impacted customers would be notified and refunded. But some damage had already been done in the past 24 hours. Cash Card holders instinctively went directly to the merchants and blamed them for the duplicate charges. The merchants were left with no recourse as their customer complaints soared. One tweet from an employee of a hotel stated, “I have had two guests call because the charge they show withdrawn from their account is double what I charged them. I have confirmed thru CC Processor that I charge the correct amount. Please assist.” Although Cash App later took accountability for the duplicate charges, they did not provide any damage control directly to the merchants with angry customers. Any negative customer experience, especially for merchants, could lead to losing a customer forever.
A Cash Card holder tweeted, “The merchant said that Cash App is to blame, and also that you’ve put out a notice to customers, but I don’t have any such communication.” Cash App left a lot of their users in the dark for an extended period. Customers prefer quick, detailed information when they are experiencing an issue with their account.
There is a lot of room for improvement around customer service provided by fintechs. Cash App failed this week, but this can be taken as a learning lesson for fellow fintechs. Customer service must be improved and prioritized as fintechs continue to roll out new flashy features.
Overview by Sophia Gonzalez, Research Analyst, Debit Advisory Service at Javelin Strategy & Research.