Consumers Identify Credit Cards by Network, Not Bank

Whether naming the best or worst credit card in their wallet, consumers call it by the network--Visa, MasterCard, American Express or Discover--rather than the bank brand. According to research by Auriemma Consulting Group (ACG), consumers tend to more readily identify network brand even though networks do not control card features, pricing or service.
 
ACG asked participants in its Cardbeat® syndicated market research report to think about the cards that best meet their expectations in customer service, pricing and value. It recorded how respondents referred to that card.

"We were surprised that more respondents did not think of their bank name before the network brand considering that mass-media brand advertising among large issuers has intensified so much in the last two years," says Megan Bramlette, Cardbeat's managing editor.

About half of consumers who perceive a difference in the service offered by their cards referred to them by network name. Approximately one-third named their "best" card by issuer, and one-fourth named their "worst" card the same way.

Respondents are more than twice as likely to think of their best-priced cards by network (57 percent) than by bank (24 percent). In citing worst pricing, 50 percent named the network, and 22 percent identified the issuer.

Of those who feel their cards have different values, 61 percent refer to the best-value card by network, and only 49 percent think of the network of their worst card first.

"While banks have indeed made progress in building brand awareness, it appears that consumers have a certain base trust in the networks," Bramlette says. "In the ever-evolving card industry, the networks are among the few players that have remained constant."