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Discover Wins Top Honors in J.D. Power Customer Satisfaction Survey

Aug. 20, 2015
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Step aside, American Express — Discover has taken the title as America’s favorite credit card company.

Discover has squeaked ahead of the competition by streamlining its reward redemption process, among other things, according to the 2015 U.S. Credit Card Satisfaction Study, released Aug. 20 by J.D. Power. The team surveyed more than 20,000 credit card customers, finding that credit card rewards and benefits remain strong motivators when consumers are choosing how to pay.

And credit card rewards — whether it’s cash back, airline miles or points — are more popular than ever. People who like the rewards they’re getting spend an average of $1,132 per month on their cards, compared with $744 per month for customers who think their credit card rewards are subpar, the study found.

“When customers feel the rewards are attractive and when they redeem rewards more frequently, satisfaction improves, they spend more and they are more likely to recommend the card to friends and family,” Jim Miller, senior director of banking services at J.D. Power, said in a statement.

Cardholders rush to redeem rewards, pounce on perks

Reward redemption is rising, with more than half of those surveyed saying they’ve redeemed rewards within the past six months. More customers are using the benefits that come with their credit cards, too — things such as access to free Wi-Fi on flights, warranty extensions on purchases, extra travel insurance and free liability coverage when renting a car.

But customer confidence is slipping in other areas. Fewer than a third of those surveyed trust their credit card issuer to keep their private information secure, although younger cardholders felt more confident than older cardholders.

Still, confidence in the top credit card issuers remained high, with the top three contenders — Discover, American Express, and Chase — nearly neck-and-neck in terms of customer satisfaction.

Top 10: How does your credit card company rate?

Want to know how your favorite credit card company stacks up? Here are the top 10 issuers, ranked according to J.D. Power’s survey results.

Rank Issuer
1 Discover
2 American Express
3 Chase
4 Capital One
5 Barclaycard
6 Wells Fargo
7 Bank of America
8 U.S. Bank
9 Citi
10 GE Capital Retail Bank/Synchrony Bank

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Virginia C. McGuire is a staff writer at NerdWallet, a personal finance website. Email: Twitter: @vcmcguire.

Image via iStock.