American Express ranked highest in customer satisfaction for the fourth straight year, as overall satisfaction with credit cards edged upward, according to J.D. Power and Associates.
Satisfaction with all credit cards in 2010 averages 714 on a 1,000-point scale, up 9 points from 705 in 2009, according to J.D. Power’s newest study released today.
However, customer loyalty continues to decline.
Card holders who say they “definitely will not switch” primary cards in the next 12 months averaged 22 percent in 2010, down from 25 percent in 2009 and 30 percent in 2008.
Customers are still skeptical of card issuers and are “less likely to view them as customer driven,” J.D. Power said.
Moreover, attempts by card issuers to educate customers on the new terms of credit card reform have fallen short. Most of the provisions of the Credit CARD Act, including a ban on retroactive interest rate hikes, took effect Feb. 22.
“Sixteen percent of card customers report that they did not receive CARD Act disclosures,” said Michael Beird, director of banking services at J.D. Power. “Among those who did, only two-thirds state that the disclosures improved their understanding of how the act affects their individual circumstances. Furthermore, only one-third of cardholders say they ‘completely’ understand their credit card terms.”
The credit card satisfaction study is in its fourth year. J.D. Power examines six key factors: interaction; credit card terms; billing and payment process; benefits and services; rewards; and problem resolution.
American Express ranks highest with a score of 769 and performs well across all six factors. Discover Card follows with a score of 757 and did particularly well in the interaction factor. U.S. Bank ranks third with a score of 727.
See J.D. Powers’ credit card rankings.
