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So, Capital One bought Discover earlier
this year for $35 billion. If you don't
know, Capital One is a bank that has
checking and savings and focuses on
issuing credit cards to subprime
borrowers, although they do have some
higherend credit cards these days.
What's in your wallet?
Discover is also a financial services
company with checkings, savings, and its
credit card business also focuses on the
subprime market, i.e. people new to the
credit card game or rebuilding their
credit. They also have their own network
that their cards run on, the Discover
network.
I don't think they'll take that here.
Of course, they take Discover. It's
accepted in 99% of places.
And as you can see, it has pretty high
acceptance here in the US at least. So
when Capital 1 bought Discover, we
assumed they wanted to switch some or
all of their cards over to the Discover
network so that they could earn an extra
cut of the interchange fees because they
would now be the issuer and the network.
Well, now they are starting to do that
and we are going to go through it in
this video. Hey credit warriors, welcome
to the show. My name is Ben Hedges aka
the credit shifu and on this channel I
talk about US credit cards, personal
finance and luxury travel. If you like
the sound of that, please subscribe. But
otherwise, let's get into the video. So,
we knew this was probably coming.
Switching the network on Capital One
cards to Discover. But it's not every
card. Don't worry, your Venture X that
you use for all your foreign trips won't
be changing to Discover. What they are
actually changing first are Capital 1's
debit cards. I guess it makes sense to
change the debit card since they mostly
just get used within the US. And like
the lady said, there's pretty good
acceptance of Discover within the United
States.
It's accepted in 99% of places.
So, what is actually changing with the
Capital 1 debit cards? Well, Capital 1
has put out a landing page that takes
you through what is happening and
answers some questions. Your bank
account number and your PIN number for
the card will stay the same, but the
16digit number on your card, the CVV,
and the expiration date will change.
This means that you will need to update
card info in any recurring payments that
you are signed up for to avoid
interruptions. They also say your card
will be widely accepted like it is
today. Keep an eye out for the Discover,
Pulse, or Diners Club International
logos. Within the US, I think it's fair
to assume acceptance everywhere, but
outside the US, maybe you will need to
pay more attention to looking out for
those logos. But most people tend to use
credit cards when they travel overseas
anyway for the no foreign transaction
fees and greater security. So I don't
think people are really going to be
encountering problems with acceptance.
You will still be able to log into your
Capital 1 app and manage your card
through Capital One. So they're not
switching to the Discover app or the
Discover website to manage the card.
It's not the Discover brand. It's still
a Capital 1 issued card. It's just that
it runs over the Discover network like
Capital One cards running over Visa or
Mastercard networks. As for when other
cards will switch, if at all at this
point, I am not sure. But I think that
if they switch other cards to Discover,
it will be the lower-end ones. Okay, you
think the Capital 1 Platinum or Capital
1 Quicks, not the Venture X, etc. Since
with those higherend cards, you want
that guaranteed acceptance overseas that
Visa and Mastercard can provide. So,
we'll have to wait and see what happens.
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next video.
