American Express Continues To Lead In Credit Card Satisfaction, Discover Takes A Dive

Another year, another crown for American Express, which claimed the top spot in the J.D. Power U.S. Credit Card Satisfaction Study for the sixth year in a row and the 15th time in the 19 years the report has been published. The big surprise is that Discover, which had previously placed no lower than second, slumped to fifth.

Have a question about credit cards? E-mail me at ted.rossman@bankrate.com and I’d be happy to help.

What’s the deal with Discover?

Discover was acquired by Capital One earlier this year; the $35 billion deal officially closed in May 2025. It was a long time coming, having been first announced in February 2024. While we haven’t seen major changes to Discover cards yet, customers seem to be on edge.

“J.D. Power study data … has shown clear and consistent trends where both acquiring and acquired brands typically experience significant satisfaction declines in a merger/acquisition,” according to John Cabell, J.D Power’s managing director, payments intelligence. “It is likely there is some volatility for Discover and Capital One related to the acquisition, and there may be in upcoming study years as well.”

Parent company knows best?

Interestingly, Capital One held steady in third place in this year’s ranking. Its standing has been on the upswing in recent years, from fifth place in 2022 to fourth in 2023 and third in each of the past two years.

I viewed Capital One as more likely than Discover to drop in the rankings this year, since Capital One announced in June that most Capital One Venture X Rewards Credit Card holders will no longer be able to bring guests into airport lounges beginning in February 2026. That was upsetting news for many cardholders.

It’s particularly surprising that Discover’s ranking has fallen. The company has long made customer service a central marketing message, including elements such as late fee waivers and TV commercials touting “we treat you like you’d treat you.” And Discover cards haven’t undergone any major changes since the acquisition. Alas, the student has become the teacher, with Capital One outpacing Discover in this ranking for the first time since its inception nearly two decades ago.

Broader trends are to blame

It’s likely that Discover’s drop in the rankings is primarily due to external factors. For example, the latest J.D. Power study highlights a growing divide between cardholders who carry debt and those who do not. Satisfaction tends to be highest among cardholders who pay in full (that’s not surprising), are “financially healthy” (also not surprising) and pay annual fees (that part is a bit surprising, although it often correlates with fancier travel rewards cards favored by affluent, especially creditworthy consumers).

While Capital One has moved noticeably upmarket in recent years, courting these heavy spenders with a host of upper-crust travel benefits, Discover has doubled down on its base of “prime revolvers.” That is, customers with good credit scores who tend to carry balances from month to month. Traditionally, this has meant a lot of regular, middle-class Americans. It could be that this group is feeling the cumulative strain of prices that have grown almost 25 percent since the beginning of 2021. Worse, this coincides with an average credit card rate that remains over 20 percent, near a record high.

Economic inequality is growing, with Moody’s Analytics reporting that the top 10 percent of earners now account for 50 percent of spending, the highest since tracking began in 1989. These are the types of customers who have historically gravitated to American Express, not Discover.

Higher annual fees can be worthwhile, but debt isn’t

“Cardholders with higher financial health scores and no revolving debt — especially those using cards with points/miles rewards programs and annual fee cards — are driving significant gains in overall satisfaction among cardholders,” Cabell added.

Overall, J.D. Power found that 53 percent of cardholders are currently carrying revolving debt. Some 56 percent are classified as financially unhealthy, a proprietary metric that J.D. Power crafted based upon consumers’ spending/savings ratio, creditworthiness and “safety net items” such as insurance coverage. The firm’s research revealed “significantly higher levels of customer satisfaction among financially healthy customers than among those who are less financially resilient.”

This jibes with the broader theme of economic inequality, and the idea that the rich are getting richer and the poor are getting poorer.

Leading the pack

The Platinum Card® from American Express topped J.D. Power’s ranking of cards that charge annual fees, while the Capital One Savor Cash Rewards Credit Card claimed top honors in the no annual fee category.

The top five issuers for overall satisfaction were American Express, Bank of America, Capital One, Chase and Discover.

Know thyself

Credit cards are not one-size-fits-all, of course. One of the biggest takeaways from this research is that cardholders should evaluate cards within the framework of their unique circumstances. It’s a bit surprising that cards with higher annual fees ($500 or more) tend to have higher satisfaction scores, but there are two main explanations.

1. The types of affluent, creditworthy individuals who flock to these cards tend to be faring better in today’s economy.
2. These customers, by and large, seem to be taking advantage of the perks.

Yes, $695 per year is a lot to pay the Amex Platinum. But if you take advantage of its many perks (airport lounge access, credits for airline fees, hotel stays, expedited airport security, digital entertainment, rideshares, food delivery), the card could be well worth it, despite its expensive price tag.

One thing just about everyone can agree upon? We don’t like credit card surcharges. J.D. Power says about two-thirds of Americans have encountered these. When they do, customer satisfaction plummets and 81 percent have chosen to pay with a different payment method as a result.

The bottom line

Consumer rankings can be informative, but they don’t change that the best credit card for you is one that meshes well with your spending habits, bestowing elevated rewards on your top spending categories and providing ongoing value in terms of cash back, travel perks and/or credits that offset various expenses. If you carry a balance, forget about rewards for now and seek the lowest interest rate possible.