Capital One is buying Discover Financial Services

Capital One/Discover Financial Services

Capital One says it plans to maintain the Discover brand on credit cards

Capital One is acquiring Discover Financial Services, in a deal that would expand the footprint of both credit card companies.

While a smaller player among credit card customers, Discover has its own payment network, which could be one reason Capital One pursued the deal. In the announcement of the deal, Capital One said it would move some of its credit cards to the Discover network.

Capital One founder and CEO Richard Fairbank believes the acquisition will provide a successful synergy.

“Our acquisition of Discover is a singular opportunity to bring together two very successful companies with complementary capabilities and franchises, and to build a payments network that can compete with the largest payments networks and payments companies," Fairbank said. "Through this combination, we're creating a company that is exceptionally well-positioned to create significant value for consumers, small businesses, merchants, and shareholders as technology continues to transform the payments and banking marketplace."

Different terms

Capital One and Discover credit cards have different terms and the announcement did not say whether Discover’s terms will stay intact. Maggie, of Winona, Minn., is one Discover cardholder who hopes Discover stays pretty much the same.

“I often find myself feeling unsatisfied with a lot of customer service experiences from companies…but every time I’ve contacted Discover I’ve had an amazing experience, always so helpful and nice I love it,” Maggie wrote in a ConsumerAffairs review. “I always feel understood and valued everytime I call and they seem like they genuinely care about their customers rather than just being there to solve your problem and hang up.”

Capital One said it plans to keep the Discover brand for current Discover accounts. Although it’s the smallest credit card company, Discover has a global payments network with 70 million merchant acceptance points in more than 200 countries and territories. 

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