(NEXSTAR) — More than a year after announcing it would acquire Discover for more than $35 billion, Capital One says it has completed the deal, bringing “together two innovative, mission-driven companies.”
The acquisition, originally announced in February 2024, was expected to boost Capital One’s standing in the credit card market, Nexstar’s The Hill previously reported. The purchase plan recently received regulatory approvals.
“This deal brings together two innovative, mission-driven companies that together are poised to deliver breakthrough products and experiences to consumers, businesses, and merchants,” Richard D. Fairbank, founder and CEO of Capital One, said in a Sunday press release. Capital One expanded its board of directors, bringing in three members of Discover’s former board, as part of the acquisition.
For now, Capital One said your accounts and banking relationships, either with it or Discover, “remain unchanged.”
“Customers will be provided with comprehensive information in advance of any forthcoming changes,” Sunday’s press release explained. “Until then, customers do not need to take any action and will continue to be served through their respective Capital One and Discover customer tools and channels.”
Discover credit card products and branded cars will continue to be offered, Capital One said, as well as the cards it has issued. PULSE, Discover’s debit card network, and Diners Club International will become part of Capital One’s offerings.
While current cards are not impacted, it’s possible that newer Capital One cards will switch over to the Discover network, The Wall Street Journal previously reported.
Kaiji Chen, a professor of economics at Emory University, told U.S. News and World Report that Discover cardholders could also gain access to Capital One’s branches and ATMs.
“I don’t think it’s anything to fear from a consumer point of view,” Clint Henderson, managing editor for The Points Guy, told NewsNation in February 2024. He noted at the time that the deal could bring “another major processor of credit cards…to consumers,” potentially lower interchange fees (businesses pay this when you swipe your card at their stores) on credit card transactions, and create more competition among credit card companies.
Henderson also said that while your points and mileages already accrued may not be impacted by the merger, the deal could allow Capital One to offer increased sign-up bonuses on new Discover cards.
Discover is among the smaller credit card companies, ranking well behind the Visa-Mastercard duopoly and American Express.
Its acceptance rate is smaller than Visa and Mastercard, however. While it says its cards are accepted at 99% of places that take credit cards in the U.S., it isn’t as widely accepted internationally. Among the countries that do not accept Discover, according to the company’s website, are Greenland, Cuba, Panama, Russia, and several countries in Africa and the Middle East. A report from WalletHub lists Mastercard and Visa as the most widely accepted credit cards internationally.
Ahead of Sunday’s announcement, Capital One also agreed to pay a $425 million settlement after being sued for allegedly misleading consumers about offerings for high-interest savings accounts. Those suing the company said they did not receive a higher interest rate on their accounts, the New York Times reported. As part of the deal, Capital One has admitted no wrongdoing.
Last week, New York attorney general Letitia James sued Capital One on behalf of consumers in her state who were also impacted by the allegedly misleading rate. This suit is not part of the settlement, the Times noted.
Capital One had been sued by the Consumer Financial Protection Bureau for the same accounts, accusing the company of “cheating” customers out of more than $2 billion in lost interest payments as a result. That suit was later dropped by the CFPB shortly after President Donald Trump took office.
The Associated Press contributed to this report.
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