topic Re: Capital One is Buying Discover Financial? in Credit in the News

Capital One is Buying Discover Financial?

citymunky — Mon, 19 Feb 2024 17:39:41 GMT

I just came a across this Capital One Weighs Acquisition of Discover Financial . I like Discover, I think they had the top-tier customer service, their cards will grow with the card holder, their saving bank offers high APY, they offer you a free TU FICO score, however besides the DiscoverIT some of their credit cards products are lacking. On the other hand Cap1 is Cap1 so I feel many will not like this move it they both merge. What happens to the Discover Payment Network if they both merge?

However the real question still remains who is buy the Apple Card from Goldman?

Re: Capital One is Buying Discover Financial?

CorpCrMgr1 — Mon, 19 Feb 2024 17:37:22 GMT

Thank you for posting this! It will be interesting if this happens.

Re: Capital One is Buying Discover Financial?

Thorin809 — Mon, 19 Feb 2024 17:47:25 GMT

Hopefully this doesn't tank their customer service. I'm relatively low maintenance. I just need good rates on my HYSA/money market and my money market checks to be on time.

Re: Capital One is Buying Discover Financial?

icednightpaper — Mon, 19 Feb 2024 17:51:58 GMT

Never a fan of mergers/acquisitions, all I can hope for is that Discover's customer service and products don't get absolutely neutered.

Re: Capital One is Buying Discover Financial?

pizzadude — Mon, 19 Feb 2024 17:55:01 GMT

Will be interesting to see if / when this is announced -- also I'd assume it will be subject to regulatory scrutiny to determine if it will negatively impact pricing / access to credit, etc.

WSJ: Capital One may acquire Discover Financial

Namaste7 — Mon, 19 Feb 2024 19:02:14 GMT

WSJ: www.wsj.com/finance/capital-one-is-buying-discover-financial-sources-say-a7c43dd2

Reuters: www.reuters.com/markets/deals/capital-one-considers-acquisition-discover-financial-bloomberg-says-2024-02-19

Feb 19 (Reuters) - Capital One, an online consumer bank and credit card issuer backed by investor Warren Buffett, is considering a potential acquisition of credit card lender Discover Financial Services, a person familiar with the matter said. While the terms could not be learned, a deal could be announced as early as Tuesday, according to the source.

Interesting 🤨

Re: WSJ: Capital One to acquire Discover Financial

redpat — Mon, 19 Feb 2024 19:03:09 GMT

Lol, there goes CLIs.....They are keeping the Disco brand though and why not crappy rewards w/ rotating cats.

Re: WSJ: Capital One to acquire Discover Financial

Namaste7 — Mon, 19 Feb 2024 19:10:37 GMT

@redpat wrote:
Lol, there goes CLIs.....They are keeping the Disco brand though and why not crappy rewards w/ rotating cats.

Exactly. Also, goodbye to the 12-month 0% purchase APR promos. That was my strategy to keep account openings to one ever two years by opening a new account Year 1 and activate Disco's 0% promo in Year 2. 😞

Re: Capital One is Buying Discover Financial?

markbeiser — Mon, 19 Feb 2024 19:25:05 GMT

As long as the account age continuity is kept on my Discover card, I'm fine with it.
My Discover card is one of my two oldest cards.

Re: WSJ: Capital One may acquire Discover Financial

CYBERSAM — Mon, 19 Feb 2024 19:30:10 GMT

@Namaste7 wrote:
WSJ: www.wsj.com/finance/capital-one-is-buying-discover-financial-sources-say-a7c43dd2
Reuters: www.reuters.com/markets/deals/capital-one-considers-acquisition-discover-financial-bloomberg-says-2024-02-19

Feb 19 (Reuters) - Capital One, an online consumer bank and credit card issuer backed by investor Warren Buffett, is considering a potential acquisition of credit card lender Discover Financial Services, a person familiar with the matter said. While the terms could not be learned, a deal could be announced as early as Tuesday, according to the source.

Interesting 🤨

"In January, Discover and Capital One reported 62% and 43% falls in fourth-quarter profit, respectively, as banks increased provisions for losses from bad loans as rising interest rates raised the risk of consumer defaults on credit card debt and mortgages."

Dosen't seem either company is doing good!

Discover it is a 1% card with mediocre 5% categories that you can't plan for! No surprise outside of starter/rebuild customers, not many would want to use them!

I have it because is one my oldest cards and real benefits that they do offer such as 1yr 0% not many know about.

Re: Capital One is Buying Discover Financial?

Horseshoez — Mon, 19 Feb 2024 19:46:35 GMT

@Thorin809 wrote:
Hopefully this doesn't tank their customer service. I'm relatively low maintenance. I just need good rates on my HYSA/money market and my money market checks to be on time.

Not much of a difference between the Discover HYSA and the CapOne HYSA; this is from the Discover web site:

That said, I'm not sure what the difference in how interest is compounded/paid would impact the accounts.

Re: Capital One is Buying Discover Financial?

Hansolojr — Mon, 19 Feb 2024 19:57:15 GMT

"The bank [Capital One] plans to switch at least some of its cards to the Discover network, while continuing to use Visa and Mastercard on others. Those larger networks have more merchant acceptance abroad than Discover does.
Capital One also plans to maintain the Discover brand on the cards and network -- assuming regulators sign off and the deal is consummated."

Re: Capital One is Buying Discover Financial?

swankytiger — Mon, 19 Feb 2024 20:09:34 GMT

in the current regulatory enviroment, I dont see how this gets approved. This is much more of a consolodation than Spirit/Jetblue.

Also even domestically, Discover has worse acceptance than AMEX, and even worse acceptance abroad.

Cap One is buying Discover

Scottisthename — Mon, 19 Feb 2024 20:26:18 GMT

Wall Street Journal breaking Cap One to buy Discover in all stock deal to be announced as soon as Tuesday

https://www.wsj.com/finance/capital-one-is-buying-discover-financial-sources-say-a7c43dd2?st=8pntmz1xrmyu0vh&reflink=article_copyURL_share

I think this news will remove them from the Apple Card hunt for sure that looks more and more like Sychronny to me. CapOne Discover cards in 2024 if regulators approve didn't see that coming.

Re: Cap One is buying Discover

Jeffster1 — Mon, 19 Feb 2024 20:26:41 GMT

Good grief. Ughh...

Re: Capital One is Buying Discover Financial?

AndySoCal — Mon, 19 Feb 2024 20:28:10 GMT

Thank you for the information. I thought that after closing my Walmart /Capital One card I would be Capital One free. Now this happens. I was in the process of leaving Discover banking wise the potential annoucement will accelerate that process. I do not like Captial One their customer service is below par. If you search the internet with the key words Capital One fined. In the results the reason for the fine is valid how bank can put themselves in a position where they would be fined for that I do not understand. I will be transferring most of the proceeds from Discover to a credit union.

Re: Capital One is Buying Discover Financial?

Hansolojr — Mon, 19 Feb 2024 20:32:16 GMT

Will have an easier time to get approved than domestic airline mergers - creates a stronger competitor to MC/V, both of whom have been regulatory targets for a while now.

@swankytiger wrote:
in the current regulatory enviroment, I dont see how this gets approved. This is much more of a consolodation than Spirit/Jetblue.

Also even domestically, Discover has worse acceptance than AMEX, and even worse acceptance abroad.

Re: Capital One is Buying Discover Financial?

UncleB — Mon, 19 Feb 2024 21:18:34 GMT

How is this going to affect those of us that are "bucketed"?

Shmike — Mon, 19 Feb 2024 22:04:56 GMT

I have to get my decent credit limits ASAP

https://www.reuters.com/markets/deals/capital-one-considers-acquisition-discover-financial-bloomberg-says-2024-02-19/

Re: Capital One is Buying Discover Financial?

DXness — Mon, 19 Feb 2024 22:38:14 GMT

If the deal gets approved, I hope Capital One keeps its better cards off the Discover network...when I had the IT, that card was extremely decline-happy, especially at gas stations, main street stores, and train stations. I also used a Discover debit card during the 7 year CO penalty period when I ruined my credit and that was equally decline-happy. What's the point of a card if you can't use it?

On the flip side, my Savor One on the MC network has never declined a purchase. Despite being outclassed by higher earning cards now, it's what I pull first when I travel somewhere and it would suck to lose that solidness.

There is a potentially-overlooked positive to the deal - assuming Capital One sells Discover accounts as securities the way it does for its own offerings, you could get back in with Discover significantly faster. They're one of the accounts I lost and they still won't take me back, when even the likes of Citi have taken me back.

topic Re: Capital One is Buying Discover Financial? in Credit in the News

Capital One is Buying Discover Financial?

Re: Capital One is Buying Discover Financial?

Re: Capital One is Buying Discover Financial?

Re: Capital One is Buying Discover Financial?

Re: Capital One is Buying Discover Financial?

WSJ: Capital One *may* acquire Discover Financial

Re: WSJ: Capital One to acquire Discover Financial

Re: WSJ: Capital One to acquire Discover Financial

Re: Capital One is Buying Discover Financial?

Re: WSJ: Capital One *may* acquire Discover Financial

Re: Capital One is Buying Discover Financial?

Re: Capital One is Buying Discover Financial?

Re: Capital One is Buying Discover Financial?

Cap One is buying Discover

Re: Cap One is buying Discover

Re: Capital One is Buying Discover Financial?

Re: Capital One is Buying Discover Financial?

Re: Capital One is Buying Discover Financial?

How is this going to affect those of us that are "bucketed"?

Re: Capital One is Buying Discover Financial?

WSJ: Capital One may acquire Discover Financial

Re: WSJ: Capital One may acquire Discover Financial