For those headline readers who are interested in the bottom line, the short answer to the question is American Express.

If you want an explanation as to who says American Express is the best credit card service provider or why American Express can claim to be the best at providing credit card services, read on.

According to a 2010 study just released by JD Power and Associates, consumers have given American Express the highest customer satisfaction ratings of the nation’s top 10 credit card issuers. American Express not only rated highest in in customer satisfaction in the 2010 study, the company also took top honors each year since the study’s inception in 2007.

JD Power and Associates, a global marketing information service that has been in business over 40 years and is probably most well-known for their customer satisfaction reports on new car quality, conducts research on six key areas of credit card customer satisfaction: interaction; credit card terms; billing and payment process; benefits and services; rewards; and problem resolution. The data gathered is then put through a mathematical formula which weights each of the key areas according to importance. The final result for each of the 10 companies will be a numerical value on a 1000 point scale.

Outstripping competitors significantly, American Express scored 769 in overall satisfaction. Discover Card ranked second with a score of 758. US Bank came in a distant third with an overall satisfaction score of 727. Not only is it significant that the American Express Company earned the JD Power Highest Customer Satisfaction Award, but the company’s score was a whopping 55 points above the customer satisfaction average score of 714.

Another item of note is that the average customer satisfaction score has risen from 703 points recorded in the 2009 report. On one hand, 11 points seems somewhat negligible. However, school teachers have repeatedly pointed out to struggling students that it is much more difficult to bring up a low grade than to maintain a high score from the outset. The overall customer satisfaction score in 2009 was the lowest in three years. Perhaps the increased average over last year is another minor indicator that the economy and the public’s trust in the economy is, like the media has recently begun to state, beginning to recover.

From the outset of the study in 2007, American Express has consistently maintained high performance scores in benefits and services. Past reports on the study have also singled out consumer satisfaction with American Express problem resolution. High scores in both billing and payment and in rewards have been highlighted in previous years’ reports. The 2010 JD Power and Associates report simply states American Express “performs well across all six factors that drive satisfaction.”

Two of the most talked about factors driving customer satisfaction seem to be a card’s rewards program or a card’s low interest rates or lack of annual fees. The importance of each of those factors is usually determined by whether or not the card holder carries a monthly balance. People who pay their card balance off each month generally seek a card offering an attractive rewards program while people who maintain a balance from month to month generally place an emphasis on finding a credit card issuer offering low interest rates and no annual fees.

Since the study was begun in 2007, two factors consistently influencing lower consumer satisfaction scores are an increase in interest rates or fees and a lack of clear communication on the part of the card issuer, specifically in relation to credit card terms. Because of legislation that went into effect in Feb. 2010 (the CARD Act), many credit card companies have made huge efforts to help consumers more clearly understand their credit card terms. The JD Power and Associates report indicates that although progress has been made, many consumers still feel they do not fully understand the credit card terms, and some of those consumers do not believe the card issuers are concerned with what is in the customer’s best interest.

In an economy that, over the past three years, has seen an extreme down turn in the housing market, multiple bank failures, and government bailouts of huge corporations, the good news is, along with an increase in the average of overall customer satisfaction, consumers generally believe that their card issuers are financially stable and reliable.

Source: JD Power and Associates

Last week, J.D. Power and Associates released their 2009 Credit Card Satisfaction Study with results of what customers really think about credit card issuers. The results weren’t surprising as most customers this past year have seen rate increases, fee increases, credit lines slashed or accounts closed completely. As a result of the economy, credit card issuers have been forced to cover rising defaults and losses. Customers haven’t responded well to the recent changes and credit card issuers have seen their customer satisfaction ratings plummet.

In fact, the J.D. Power and Associates survey found that the customer satisfaction level has reached a three-year low. Michael Beird, J.D. Power and Associate’s director of banking, said, “Overall satisfaction declines 86 index points when a customer incurs a late fee. Issues with fees also contribute to the high incidence of problems and complaints in 2009, with 18 percent of customers reporting problems, compared with 10 percent in 2008.”

In 2008, only 10 percent of customers reported that their fees and rates were increased. That number has almost doubled in one short year. That’s right…20 percent of credit card customers now say that they have seen an increase in credit card fees and rates. But, does the type of customer affect satisfaction?

Absolutely.

The survey found that those who are among the unhappiest are those credit card holders who do not pay off their credit cards in full each month. Credit card customers who carry a balance from month to month gave credit card companies the lowest ratings. American Express ranked highest in customer satisfaction for the third straight year with an index score of 761. Discover Card and National City came in second and third with index scores of 751 and 740, respectively.

So, what have these companies all done well? Customers reported being satisfied with credit card companies when they received consistent communication from the creditor. Even when a fee or rate increase did occur, customers reported being satisfied 97 percent of the time when they received notification of the increase beforehand.

Although customers are not overly satisfied with credit card companies currently, there is one thing credit card issuers can do to keep customers happy. Communicate. Credit card companies need to keep their customers informed and customers need to do their part by staying informed. Customers can actively participate in the communication process by researching different credit cards and educating themselves before applying.

Surely, the level of overall credit card satisfaction will increase when well-informed customers team up with credit card companies who communicate.

Have you had a good or bad experience with your credit card issuer this past year? Give us your feedback.

In a credit environment where lenders and banks seem to be cutting back at every possible opportunity, Discover Card introduces a new credit card to enhance the companies card offerings. The new Escape by Discover credit card lets cardholders earn airline miles on every purchase they make.

For starters, you can earn double airline miles on every purchase and you’ll get 1,000 bonus miles each month you use the card for the first 25 months. Redeem miles for unrestricted airline travel, other travel credits, gift cards or cash. Receive $100 in travel credits for every 10,000 miles, gift cards at over 90 partners starting at just 1,000 miles or receive $25 in cash for every 5,000 miles.

With excellent credit, you can transfer higher rate balances to the new Discover Escape credit card and receive 0% APR for twelve months. Depending on your credit history, applicants can also receive an introductory APR of 0% for six months on purchases and determine your regular APR. Plus, get enhanced travel benefits like car rental insurance, trip cancellation insurance and more all for an annual fee of $60.

Use the links above to apply online or to read the full terms and conditions.

Discover Financial Services has announced the introduction of the only biodegradable credit card available in the US market. The new Biodegradable Discover® More Card is made from 99% biodegradable PVC, which allows 99% of the card’s plastic to safely be absorbed into the soil of exposed landfills. The card will break down in water, soil, compost or wherever microorganisms are present and is expected to degrade completely within five years.

“The biodegradable Discover Card is another way for environmentally conscious consumers to do their part to help protect our planet,” said Kelly Tufts, director of marketing planning & strategy at Discover Financial Services.

This announcement is part of Discover’s commitment to help fight climate change and encourage responsible resource use. Discover also encourages its customers to help save paper by enrolling in paperless statements. In 2008, Discover saved more than an estimated 4.6 million pounds of paper.

Existing cardmembers can request the card directly through Discover Card’s customers service. The new biodegradable card is identified by a biodegradable symbol located on the back of the card. The biodegradable card still provides the same best-in-class features and benefits that all Discover Card cash rewards cards include.

It is hard to believe that the holidays are just around the corner - big meals, great parties, gaining a few pounds and cash back bonuses from Discover Card. If you want to stretch your holiday spending a little further this year or if you have been thinking about getting a Discover credit card, now is the time to apply. Discover Card is offering a double cash back bonus at grocery stores on several cards and a cash back bonus at over 160 mall locations throughout the US.

Double Cashback Bonus at Grocery Stores

Earn Double Cashback on grocery stores purchases starting November 1st through December 31st, 2008.  That means you earn 2% cash back on your first $1,000 in grocery store purchases. Get your Cashback Bonus on any of these cards when you apply for the Miles by Discover Card, Discover Motiva Card, Discover Open Road Card or the Discover Student Open Road Card. You can also earn 5% to 20% cash back through Discover Card’s exclusive shopping website featuring top online retailers. Using any of the Discover More cards earns 5% cash back at grocery stores through December.

Cashback Bonus at over 160 US Mall Locations

Check Discover’s list of particpating mallsto search over 160 US mall locations to earn a Cashback Bonus when you shop. Spend $200 on any Discover credit card to earn a $20 Discover gift card - a 10% bonus. To get your Discover gift card, take the original sales receipts to your mall location’s customer service desk by 01/04/2009. Supplies are limited, so get there early.

Saving money this holiday season is made easier with Discover Card, the largest provider of 5% cash back credit cards. Get the full terms and conditions of each offer when you apply online.