Update 10/25/24: Deal won’t close this year.
Capital One will buy Discover Financial Services, WSJ reports. The bank will keep the Discover brand. The massive merger will combine two of the largest credit card issuers in the US.
Capital One uses Visa and Mastercard for most of its cards. They plans to switch some of their cards to the Discover network, and continue using Visa and Mastercard for others.
Now, what’s on my mind: will Discover start doing 3-pulls for credit card applications? 🙂 In all likelihood, it will be many years until there are any changes to how either bank operates. It remains to be seen if this will affect credit card or bank signup bonuses in the longer term.
Doubt Discover Cashback Checking will last since C1 is subject to the Durbin Rule for debit cards. I have an account I fund with a few hundred to use where credit cards are surcharged. Anyone have a no strings attached alternative with Visa/MC that offers 1% CB on debit?
Upgrade checking account with debit card. 1% CB, no limit.
There is definitely a limit. Then shutdown.
What numbers were you doing before shutdown?
My P3 has been doing 60-90k/month for maybe 2+ years now.
You have a lucky P3.
Holy cow.
These are the two I know of:
Affinity FCU has a cash back debit account earning 1% cash back.
FutureCard has a cash back debit account earning 1% cash back, and more in certain categories. 5% cash back on certain categories (thrift stores including eBay, short & long distance public transportation (bus, train, subway), bikes & bike repair & rental including ebikes, same for electric scooters, vegan restaurants, a few other things), 6% at certain merchants.
Doc has posts on both of them. Both have bonus for signing up with referral link I believe.
Discover is removing AAA and another partnership branding from their savings accounts.
I was able to churn the Disc Miles card at least 3x over the past 3 years for the 3% back, after 12 months. (Used exclusively for cats that no other card had for the cashback. ,like doctor copays, dentists, and insurance premiums. Plus, other assorted stuff inc Vanilla cards. They do not care what you buy!! AMEX was always iffy on the VGC so no worries on Disc Miles. I just finished my 3rd Disc card this month. My method is to cancel 2 months after the 3% posts and reapply another month later. Cap 1 will probably not do this.
But my latest method is just to buy VGC in Staples when they have no fee using Inks, and then 5%. So, no more Disc. for me.
Discover is super lax to ms… that will probably end
Good, Discover was useless anyways in the US and international
Their MM account was pretty generous for those who may not have qualified for a CU that had a better MM account or just don’t want to deal with locking up money in T-bills for 28 days every month.
I use it in the US all the time, and internationally I’ve used it in Brazil, France and Spain. Discover owns the Diner’s Club network.
I’ve never not been able to use Discover in the US. Internationally, I can still use it about 70% of the time. Very good acceptance in China, Japan, Korea, Australia, and Europe.
I think Cap1 is useless. Matter of opinion I suppose.
Miles program isn’t the best, but decent. Venture X is a very good card. If can pair Discover with it, similarly to Freedom with Sapphire, even better.
How so? I’ve had Discover It for over 10 years and never had a problem
they work as diners club, JCB, and union pay around the world. Along with some other names I’ve never heard of. https://www.discoverglobalnetwork.com/our-network/global-cardholders/
https://www.discoverglobalnetwork.com/our-network/our-unique-network/
Any idea how this will affect Discover’s MM accounts?
Request a 12 month 0% APR before Cap One nixes that option. https://www.doctorofcredit.com/discover-offering-some-cardholders-0-apr-for-12-months-when-asked/
Without knowing the intricacies of how credit cards and how they process transactions is it safe to assume that CapitalOne is looking more at Discover’s network to gain control of and move further away from Visa and maybe Mastercard?
That’s the general understanding
JimH Sounds like after talking to Discover. It will be separate but share payment system.
What’s in your wallet? Oh Discover… how about now?
It’s not like Discover has been a competitor for a long time. They’ve seemed to have put no effort in to anything. Discover has a much cleaner looking app and better customer service though. Their product offerings are pretty mediocre and outdated though. Maybe Capital one will build the network out more before switching all cards over, or maybe they’ll bribe you with slightly better perks using Discover instead of keeping your visa/mc version.
I love Discover. Great customer service and straightforward cashback. Better product than the coupon books Amex peddles
And cash back at checkout. No fee. Cuts trips to the bank or ATM.
Good job discover. Didn’t even know this is a thing until now tho. Been a card member for over 7 years,
Discover has a worldwide credit network that is not just Discover but also Diners Club International and Pulse.
That network competes with Visa, MC, and Amex.
And, remember, there’s a bill in congress (unknown if it will pass) that tries to get banks away from Visa/MC, so maybe that’s what Capital One is most interested in, the Discover worldwide network?
Better customer service is huge, how is that putting no effort into anything? Attentive and empowered, US-based customer service is a really big deal and I’ll take that over an extra 1% cash back any day. And as it happens, my APR has stayed significantly lower on my Discover card than any of my other cards.
Doubt they can switch all cards over to Discover. Unless they plan to put in major effort to increase Discover’s acceptance overseas.