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.

And the award goes to…American Express - again. American Express prides itself on its outstanding customer service. According to a nationwide survey conducted by J.D. Power and Associates, American Express ranked the highest of all the credit card companies in customer service. This is, in fact, the second year that customers have rated them highest in customer service.

The J.D. Power and Associate study carefully measures each credit card company in five key areas. The five factors are: interaction, billing and payment processes, fees and rates, reward programs, and benefits and services. As you can see, the study really encompasses every factor of credit cards. The study is based on a 1000 point scale and relies on real customers’ answers. American Express scored 783 points. Discover Card came in second with a total of 751 points.

American Express performed well in every category. American Express got the highest score out of any of the other credit card companies in all of the five categories. Discover performed well in the interaction, billing and payment processes, and reward program sections. According to the executive director of financial services at J.D. Power and Associates Rocky Clancy, American Express and Discover both offer a variety of services and benefits to a wide variety of customers. He said, “American Express and Discover Card are very different in their fees, reward programs and incentives, and their strong performances indicate their ability to suit the various needs that dissimilar types of cardholders have.”

The study also showed that people who pay off their balances every month (also known as transactors) tend to choose their credit cards by rewards programs 77 percent of the time. People who carry balances on their credit cards (also known as revolvers) look for low interest rates and low fees when choosing their credit cards 65 percent of the time. American Express has really honed in on these credit card trends. This is why they offer a wide variety of services and perform so well on this customer service satisfaction study.

J.D. Power and Associates also compared the use of cash back credit programs and reward programs. They found that 72 percent of all credit cardholders use some kind of reward program. Cash back programs were found to be the most common type of reward program. Customers also reported that getting cash back is the second most satisfying type of reward program. Any idea what the most satisfying reward program is? Customers who participated in the study said that getting free hotel stays is the most satisfying type of reward.

Customers who took advantage of reward programs tended to be more satisfied with the credit card provider than those who didn’t. Customers want to be rewarded for using credit cards. They want the redemption process to be as easy and quick as possible. This is another reason why American Express scored so high in their overall customer service ratings.

The 2008 Credit Card Satisfaction Study examined the spending habits of 7,665 credit cardholders. They carefully asked these credit card users to rate their credit card company based on five key factors. American Express took the lead in overall customer service satisfaction for the second year in a row. American Express has found the key in making their customers happy and giving them the opportunity to let their credit cards work for them.