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
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launchi...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
Amazon is pursuing new markets and disrupting industries at an incredible pace. Almost every industry seems to be in its crosshairs. Companies and industries that once thought they were safe are now worried about being “Amazoned.”. The new watch word should be “Be afraid. Be very afraid.” In his session 21st Cloud Expo, Chris Kocher, a co-founder of Grey Heron, will address questions such as: What new areas is Amazon disrupting? How are they doing this? Where are they likely to go? What are th...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
In the fast-paced advances and popularity in cloud technology, one of the most critical factors revolves around concerns for security of your critical data. How to assure both your company and your customers they can confidently trust and utilize your cloud environment is most often top on the list. There is a method to evaluating and providing security that exceeds conventional modes of protecting data both within the cloud as well externally on mobile and other devices. With the public failure...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...