Bank of America, USAA and Wells Fargo have all come out on top in a new study looking at which credit cards are the best at fraud prevention, detection and resolution. Not surprisingly, retail credit cards like Target scored the lowest in the study.
The ninth Annual Credit Card Issuers’ Study by Javelin Strategy & Research looked at the records of 24 credit card issuers in order to learn more about fraud trends and ways to improve security.
Coming out on top
Bank of America was the overall winner earning Best in Class status for security, a spot they have held for the last seven years. The bank earned a grade of 70% (out of 100) on the study’s scorecard, coming in 15 points ahead of the industry average.
USAA came in first in the category of fraud prevention, followed by Bank of America, Citibank, Navy FCU, and State Farm. These issuers were effective at preventing fraud due to their focus on educating cardholders on how to keep their information safe, whether they are shopping online or in the store, or using social media networks.
Associated Bank and SunTrust tied for the top spot when it came to resolving fraud issues. A fast response time is an important part of resolution. Both of these issuers provide their customers with a line of credit or reverse fraudulent charges within 48 hours.
BB&T, Pentagon FCU, and PNC took the other three top spots in this category. All the winners adopted resolution initiatives that include creating a team to help customers resolve issues quickly and providing 24/7 account suspension once an issue is discovered. Cardholders are also off the hook for any fraudulent charges.
Wells Fargo was the best at actually detecting fraud, doing especially well at catching changes in cardholders’ credit card activity or account information. Fifth Third, First National Bank of Omaha, U.S. Bank, and Nordstrom were also in the top five. All these issuers pay attention to charges made when a credit card is used virtually, whether that’s shopping online or via phone. Only about a third of the issuers in the study provide this service. According to Javelin online purchases are made by criminals in just about half of fraud cases.
Retailers scored low
Retailers who issue credit card cards are often prime territory for criminals. The study looked at three retail credit cards, and they actually scored the lowest in the study when it came to prevention. Target and Nordstrom came in at the bottom of this category indicating that there is an opportunity for retailers to provide their customers with more effective protection.
Javelin Strategy & Research used a scorecard-based system when reviewing the profiles of the credit card issuers in this study, which included: Pentagon Federal Credit Union, PNC, RBS, State Farm, Bank of America, Barclays, BB&T, Cabela’s WFB, Capital One, American Express, Associated Bank, Chase, Citibank, Discover, Fifth Third, First National Bank of Omaha, GE Capital Retail Bank, Navy Federal Credit Union, Nordstrom, SunTrust, Target, Wells Fargo, U.S. Bank and USAA.