According to J.D. Power and Associates, American Express and Discover Card received the highest ratings for overall customer satisfaction. The 2007 Credit Card Satisfaction StudySM was released early in the fourth quarter and measures credit card customer service satisfaction with five key factors. The top ten credit card issuers were examined in the study with American Express receiving the highest rankings.
The key factors used in the study were: benefits and rewards (34%), rewards (25%), billing and payment process (21%), fees and rates (16%), and problem resolution (4%). All credit card issuers were measured on a 1,000 point scale. American Express received a score of 735 and performed very well in the benefits and features, and problem resolution categories. Discover Card followed at a close second-place receiving a score of 728 while performing well in rewards, and billing and payment processes. Both issuers performed well above the industry average of 658.
Cardholders generally fall into two different categories, those who pay their balance in full every month and those who pay less than their balance every month. The two groups tend to evaluate credit cards based on different criteria, but overwhelming the type of reward is the most important. The study indicated that over 80 percent of participants receive some type of credit card reward with usage. Over 40 percent of cardholders receive airline mile points, while only 22 percent receive points towards cash back and nine percent receive hotel reward points. Cardholders who receive cash back or hotel reward points report a higher level of customer satisfaction than those who receive airline miles.
Low interest rates and no annual fees are also important to many cardholders. The J.D. Power and Associates study shows that customers of Discover, WaMu and Wells Fargo were all selected based on no annual fees being associated with their credit cards.
Visa and MasterCard cardholders indicate that their credit cards are accepted everywhere at 89 percent and 87 percent, respectively. American Express cardholders indicate their cards as being accepted everywhere by only 17 percent of the study’s participants. Discover credit cards were accepted everywhere by 19 percent of participants.
The J.D. Power and Associates’ study was based on responses from 7,812 credit card users. In a survey released by Consumer Reports in the fourth quarter of 2007, also gave American Express and Discover Card top rankings for overall customer satisfaction.
