President’s Choice Mastercard’s are rated as the top rewards credit card by Canadians, followed by American Express, Canadian Tire and Capital One.
According to the J.D. Power 2018 Canada Credit Card Satisfaction Study, Canadians place a high value on their rewards programs, so much so that 48% who switched their primary credit card during the past year did so for a better rewards program.
According to the study, two-thirds of card holders say they completely understand how to redeem rewards. Overall satisfaction is 87 points higher among this group than among card holders who say they do not fully understand how the system works. Furthermore, rewards redemption and frequency also contribute to higher satisfaction and loyalty levels.
Satisfaction is higher among card holders who realized tangible benefits by redeeming rewards in the past month, compared with satisfaction among those who redeemed 1-3 months ago; those who redeemed more than a year ago; or those who have never redeemed.
Cash back and airline tickets are the top two rewards card holders choose.
Canadian Credit Card Satisfaction
• Two is better than one: On average, consumers in Canada used two credit cards for the purchase of goods and services in the past three months, with 81% of their total spend charged on their primary card. The average length of time card holders stay with the same credit card issuer is 10 years, with a median monthly spend on the primary credit card of $600.
• Card holders in Canada embrace mobile, led by Gen Z1: More than half (51%) of credit card holders in Canada have used mobile apps during the past three months to manage their account, redeem rewards and take advantage of other benefits. This mobile adoption level is significantly higher than in the United States (39%). Among card holders in Canada, those in the Gen Z generational group have the highest level of mobile app adoption (79%). Perceptions of security may be hindering mobile adoption, as only 41% of card holders perceive their personal information is very secure when using a credit card app, and 36% perceive the mobile app is less secure than the website.
• Understanding the mobile app drives satisfaction: Mobile app adoption results in a slight lift in overall satisfaction (761 vs. 755, respectively), but the real benefit occurs when card holders say they completely understand the mobile offering. Overall satisfaction is 77 points higher among card holders who completely understand the mobile app than among those who do not completely understand the app (810 vs. 733, respectively).
Canadian Credit Card Rankings
1. President’s Choice Financial (PCF)
2. American Express
3. Canadian Tire
4. Capital One
5. BMO Bank of Montreal
6. RBC Royal Bank
8. National Bank of Canada
10. MBNA Canada
11. TD Canada Trust
The Canada Credit Card Satisfaction Study measures satisfaction of card holders’ primary credit card issuer. The study measures performance in six factors (in alphabetical order): benefits; communication; credit card terms; customer interaction; key moments; and rewards.