Capital One buying Discover

Seems like there could be some interesting consequences once the merger is completed around EOY.


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This is a very interesting play by Capital One. Discover sort of goes after the same target customer - new (or not so great) credit, higher likelihood of carrying a balance, etc. It seems to be a good match on the surface, but Discover’s customer service is miles better than Capital One and I wonder how Discover’s customers will react to this news.

The WSJ article mentions that some of Capital One’s existing card portfolio will get rebranded to Discover. I have to think that’s the long term play across as many of their cards as possible, sans maybe some of their cobranded cards. Why incur the charges associated with running cards on other networks when you have your own?

I don’t know that interesting is the right word to describe the likely consequences…


I just hope they don’t axe the Discover 5% cashback on rotating categories. Only reason to keep a discover card for me.


Have to think Discover cardholders will be seeking other options if Capone operates Discover the way they operate themselves. Discover has a lot of US employees in call centers that will presumably lose their jobs. :frowning:


“This agreement underscores the strength of our business and is a testament to the hard work of Discover employees. We look forward to a bright future as part of the Capital One family and to providing expanded opportunities for our loyal customers.”

Bold added. Yeah, right!

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Cashback doubled for first year. Not too many 3%-on-everything cards out there.

But the biggest concern is that the Capital One blacklist will likely now be applied to Discover cards as well.


Which card do they have thats 3%?

I audibly gasped when I read this news. Surprised myself as I only ever do that when someone I know dies unexpectedly.

CapOne enshitified INGDirect accounts (by reducing interest rates and then introducing new accounts that paid better rates without automatically converting old accounts to new ones), and there’s no reason to believe they won’t do something similar to DFS. The two have had the same rate on savings for quite some time, but with less competition it certainly doesn’t have to be as high. I hope this merger is blocked by regulators. Mergers this big are never good for consumers.


It matters less now that almost everyone in the US accepts Discover, but it still matters for international travelers. The only place you can take your Discover card is Japan due to their agreement with JCB. If they switch Venture X away from Visa, it’s going to lose a huge part of its appeal.


1.5% Miles card, that is doubled for the first year.


As a travel card, that’d be a puzzling move to switch it to a network that is so patchy abroad. May save them on processing fees paid to VISA but it’s a bit moot if customers stop using it altogether.

Mergers in the miles and point space are not generally good for us, but it’s not like Discover offered a bunch of juicy bonuses anyway.

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No, they just have excellent products that other banks had to compete with, and now they won’t have to.


They offer good cards and accounts… but nothing really class leading. 1.5x cash back on the Miles card is bested by a number of banks and credit unions, and the 5x rotator card is again good but also bested by competitors like Chase that give you transferable URs with better cpp values. Similarly the checking and savings package is good - but the APY on savings isn’t anywhere near the top of Ken’s site.

I will say that the debit card reward scheme is somewhat unique. None of their competitors really offer this aside from a few podunk credit unions that are a PITA to work with. Where Discover does lead the pack is customer service. I think that’s the real loss in this acquisition as Capital One is a really terrible bank and card issuer.

Your point about international acceptance was a good one. I suspect they will keep Visa on the VentureX and other travel cards. The Mastercards like Savor and Quicksilver feel like the candidates to move to the Discover network.

I do think this merger gets regulatory approval. I think regulators will view this merger as strengthening the Discover processing network to be a more formidable competitor against Visa and Mastercard. That’s where all the regulatory attention and legislation has been lately - on interchange and fees. Not so much on credit card rewards or bank account features.


I’m afraid you’re right. As for Discover’s cashback offerings being ho-hum, the first year is doubled, as mentioned up-thread. They also accept almost anything as a charge (as opposed to cash advance), and you can rinse and repeat the miles card every 11 months.

You mean every 13 months? You dont want to rinse at 11 months, because you need to wait 12 months to get the cashback match.

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You’re right, although I do it at 11 months by flipping to by better half’s account.

What if you didn’t have a better half? Would they approve you for a new one every year immediately after closing one?