Welcome!

News Feed Item

J.D. Power Reports: American Express and Discover Tie for Highest Rank in Customer Satisfaction

How Credit Card Companies Handle Fraud and Security Breaches Affects Satisfaction; When Done Right, a Bad Event Can Turn Into a Positive Customer Experience

WESTLAKE VILLAGE, Calif., Aug. 28, 2014 /PRNewswire/ -- American Express and Discover—two credit card issuers with very different business models—tie for the highest ranking in credit card customer satisfaction, demonstrating that there is more than one path to satisfaction, according to the J.D. Power 2014 U.S. Credit Card Satisfaction Study(SM) released today.

J.D. Power corporate logo

The study, now in its eighth year, measures customer satisfaction with credit card issuers by examining six factors: interaction; credit card terms; billing and payment; rewards; benefits and services; and problem resolution. Overall satisfaction is at a record-high of 778 on a 1,000-point scale in 2014, surpassing the previous high of 767 in the 2013 study.

American Express, which ranked highest in each of the eight years since the study's inception in 2007, and Discover each achieve a score of 819. However, the two companies attain the same high level of customer satisfaction using very different business models.

American Express offers 21 cards aimed at different customer segments—some with annual fees and some without—and an array of reward options ranging from cash-back to travel rewards. Its customers tend to be more affluent, spend more and are less likely to carry a balance than customers of other card issuers. Discover's strategy focuses on a single card with cash-back rewards and no annual fees. Discover serves a broad customer base and offers tools to help its customers manage their spending and debt, and provides its cardholders their credit score free of charge.

"This is really a tale of two very different credit card companies that both excel at customer interactions," said Jim Miller, senior director of banking services at J.D. Power. "American Express and Discover provide great personal service when customers call in and also make it easy for customers to manage their accounts online as well as by using mobile apps."

"The market is ultracompetitive and credit card companies are using reward programs to make their card more attractive. However, layering on rewards is not the key to satisfied customers, rather it's understanding your customers, knowing what motivates them and aligning rewards and benefits to their needs."

Fraudulent Activity, Security Breaches and Satisfaction
While only 11 percent of customers report a problem or complaint with their credit card, the most common issue is unauthorized or fraudulent activity, which accounts for 21 percent of all problems. Interestingly, when properly handled, credit card companies can turn a bad event into a positive customer experience.

Customers are much more understanding about possible fraud and perceive their bank is looking out for them, compared with a security breach. Satisfaction among customers contacted about possible fraud is 797, compared with 767 among those contacted about a security breach.

Furthermore, the study finds that when a credit card company notifies a customer of a security breach but does not issue a new card, satisfaction drops to 734. When a new card is issued, satisfaction improves to 788, and increases to 801 when customers get the new card quickly—within seven days. When a credit card company notifies a customer, replaces their card within seven days and ensures they receive email alerts, customer satisfaction jumps to 835. 

Cardholders can also protect themselves from fraud and security breaches. In addition to checking their billing statements, they can set up alerts with their card company to monitor their activity. Beyond that, cardholders also should review their credit reports—each of the three main credit reporting agencies offer one report free each year—and track their credit scores to detect fraud or identity theft.

KEY FINDINGS

  • Chase ranks third in customer satisfaction with a score of 789.
  • Even with record-high customer satisfaction, 10 percent of customers have switched their primary card in 2014, up from 8 percent in 2013. Among those who switched cards, 42% did so for a better rewards program. 
  • Credit card issuers are working to improve their rewards programs to retain customers, as 19 percent of customers indicate the value of their rewards program has improved in 2014, up from 17 percent in 2013.
  • Improved understanding of their current rewards programs may prevent customers from shopping for a new primary card. The percentage of customers who say they "completely" understand how to earn rewards has increased to 63 percent in 2014 from 59 percent in 2013. However, in 2014, 21 percent of customers don't know if they can earn extra rewards for specific purchases; 43 percent don't know if their rewards have an annual maximum limit; and 30 percent don't know if their rewards have an expiration date.
  • One way a credit card issuer can look out for its customers and increase communication is through emailing service alerts. Satisfaction among customers who receive service alerts is 76 points higher than among those who either don't know they are available or think they are not offered. Mobile also helps build the connection between issuer and customer. Satisfaction among customers who use mobile is 54 points higher than among those who do not.

The 2014 U.S. Credit Card Satisfaction Study includes responses from nearly 20,000 credit card customers. The study was fielded from September 2013 to May 2014.

Overall Customer Satisfaction Index Scores  


J.D. Power.com Power Circle Ratings

(Based on a 1,000-point scale)           


For Consumers



American Express

819


5

Discover 

819


5

Chase

789


3

Industry Average

778


3

Barclaycard                                                    

776


3

U.S. Bank

773


3

Wells Fargo

773


3

Bank of America

766


3

Capital One

765


3

Citi 

756


2

GE Capital Retail Bank

739


2





Power Circle Ratings Legend
5 – Among the best
4 – Better than most
3 – About average
2 – The rest




Media Relations Contacts
Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; 818-317-3070;
[email protected] 
John Tews; Troy, Mich.; 248-680-6218; [email protected]

About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info 
About McGraw Hill Financial www.mhfi.com 

Logo - http://photos.prnewswire.com/prnh/20130605/LA26502LOGO

SOURCE J.D. Power

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...