Overall satisfaction with credit cards among small businesses has surpassed pre-pandemic levels, according to a survey by JD Power.
The survey found satisfaction was rated at 858 (on a 1,000 point scale) which is up seven points on 2022 and up nine points since 2019.
Small businesses reported they were in an increasingly good position, with 38% saying they are financially better off than they were a year ago, up from 34% in 2022.
The survey also found just 41% of small businesses are carrying revolving debt, down from 44% in 2022.
Business card expenditure is also increasing with small businesses now spending an average of $13,000 per month on their credit cards. Credit cards are most commonly used for office supplies, with 78% using them for this purpose compared to 70% using credit cards for operating expenses and 65% using them for travel.
John Cabell, managing director of payments intelligence at JD Power, said: “Card issuers have done a great job of delivering to small business owners services and rewards programs that have helped them through a tough economic period, and now, as the business outlook improves, issuers are being rewarded with higher spend and higher levels of customer satisfaction.”
The survey identified that rewards programs are crucial to small business customer satisfaction. Small business customers that spend $20,000 or more per month have higher levels of overall satisfaction with their card issuers, which is driven largely by increased interaction and improved alignment of spending with reward programs.
These high spenders are also likely to use five or more supplementary card benefits, which further increase overall customer engagement and satisfaction.
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