Many Customers Don’t Understand Their Credit Card Rewards

August 28, 2013  
credit card news

More than one-third of credit card users are either unaware of the benefits connected with their cards or do not completely understand them, according to the J.D. Power 2013 U.S. Credit Card Satisfaction Study. Only 59 percent of consumers reported that they completely understand their card rewards, down from 66 percent last year.

"Customers who use their card’s benefits spend an average of $400 more per month on their card, compared with those who are aware of benefits but do not use them, so clearly this is an area of importance to card issuers," said Jim Miller, senior director of banking services at J.D. Power. Fifty-three percent of customers did not completely understand the cards' terms. Many of these consumers were unclear about interest rates or late-payment fees. Customer satisfaction with their credit cards improved for the fourth consecutive year, reaching a score of 767 on a 1,000-point scale. American Express earned the top spot with 816 points.

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