Credit card offerings should consider cardholder segment

Consumers are increasingly aware of the variety of credit card offerings in the marketplace today. As consumers evaluate the plastic they carry, there are a number of factors they deem important. These factors include fees, card security and card benefits and value-added options, such as rewards and loyalty programs.

To remain relevant, card issuers should offer consumers card conveniences and benefits that best meet their needs. This requires card issuers to understand each of the main cardholder segments they serve.

Cardholders are often divided into the following segments:

Revolvers — Cardholders who carry balances, paying off those balances over time

Transactors — Cardholders who pay their balances each month, avoiding interest charges

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