Only 1 in 3 Cardholders Truly Understand Their Credit Card Benefits
J.D. Power just released the results of their 2019 Credit Card Satisfaction Study. They found the average cardholder has 16 supplementary benefits on the cards, but only 36% actually understand what those benefits are.
Credit card benefits are different than credit card rewards. These are specialty features on a card, such as rental car insurance, concierge service or trip cancellation insurance. These automatically come with the card and are applied to qualifying transactions. On the other hand, rewards are earned over time, such as cash back or airline miles. J.D. Power found that 66% of cardholders understand their credit card rewards.
Card satisfaction was highest among consumers who understand their card benefits. Knowledgeable consumers had a satisfaction rate of 864 out of 1,000, compared to 699 for less knowledgeable cardholders. The knowledgeable cardholders also spent an average of $307 more per month, tapping into the full potential of their credit cards.
The study also showed consumer satisfaction when it come to credit card companies.
Discover ranked the highest in customer satisfaction among national issuers for the fifth time in six years. Discover had a satisfaction score of 842, followed by American Express with 838, and Capital One and Chase tied with 807 each.
Despite the prevalence of data breaches in America, 52% of cardholders believe that card issuers protect their identity. This is up from 49% the year prior, showing a decrease in cybersecurity concerns among consumers.