NEW YORK—When it comes to credit cards, American Express has been ranked highest in customer satisfaction, according to J.D. Power’s annual credit card satisfaction study, which provides insights into why certain cards are ranked more highly than others.
American Express earned an overall satisfaction index score of 835, which beat the credit card industry’s average score by 33 points. Discover placed second with 827 points, and Capital One took third with 808.
The J.D. Power Credit Card Satisfaction Study, which is in its 11th year, uses six factors to measure customer satisfaction, including interaction, credit card terms, billing and payment, rewards, benefits and services, and problem resolution.
Key findings of the study include:
- Credit cards that scored the highest in customer satisfaction are those that offer cash back rewards. Airline credit cards and store-branded Visa and Mastercard rewards cards have the lowest level of satisfaction among rewards cards
- Regional banks are starting to compete with larger Visa and Mastercard issuers. Regional bank credit card accounts have increased 24% since 2014, and overall customer satisfaction is within 10 points of national issuers
- Websites and mobile apps are becoming an important factor in customer satisfaction. When customers do not use these digital channels, their satisfaction is only 780. Satisfaction rises to 807 when customers use online features and to 827 when customers use mobile-only features. When customers use a combination of digital channels, satisfaction climbed to 834
- Satisfaction levels among customers over 40 are on the rise, while they are declining among customers under 40. Younger customers also tend to spread their spending across multiple cards, which means they are more likely to switch their primary card. When customers do switch their primary card, older users change for better rewards (44%) while younger cardholders switch for better benefits (38%)
“This is the ninth time American Express has topped the list since the study launched in 2007. Amex earned the highest ranking in 2007 through 2013 and shared the highest ranking in 2014,” noted Bill Hardekopf, CEO of LowCards.com.