Capital One acquired Discover in May 2025, so Discover credit cards are now part of Capital One, but for now, nothing changes for most customers—accounts, rewards, apps, and customer service stay the same. The major shift is the integration of Discover's payment network, with Capital One planning to transition some debit cards to the Discover network (starting with a migration from Mastercard in 2026), potentially affecting interchange fees, and eventually offering a wider range of products, though Discover cards will remain branded as Discover for now.
UPDATE: On April 18, 2025, Capital One and Discover announced in a joint press release that they received the final regulatory approval for Capital One to acquire Discover. The transaction is expected to be completed on May 18, 2025 and there'll be no changes to customer accounts immediately after the acquisition.
Your Discover rewards, account numbers and benefits will remain the same. Your rewards still don't expire, and you won't receive a new card from Capital One. Now, in the future, some of this might change. But for now, the only thing that has changed is your cardholder agreement.
Capital One and Discover are officially one company after Capital One's $35 billion acquisition of Discover closed May 18. The deal was initiated in February 2024, when Capital One announced its plans to acquire Discover. Despite the deal closing last week, don't expect any changes to hit your cards right away.
You can't use your Discover card because of issues like suspicious activity (fraud alert), over-limit balance, missed payments (suspension), an expired/damaged card, or if you didn't notify them of travel, but also, Discover merged with Capital One in May 2025, so you should check your Discover online account for official updates or call their support for specific reasons.
The main controversy surrounding Discover (Discover Financial Services) involves its widespread, 17-year practice (2007-2023) of misclassifying millions of consumer credit cards as commercial cards, leading to over $1 billion in inflated interchange fees for merchants, prompting major FDIC/Federal Reserve penalties, restitution orders, and a significant class-action settlement. Other issues include regulatory scrutiny over consumer compliance, a lawsuit by a former executive alleging discrimination, and ongoing debates about higher merchant fees in general.
Avoid closing your oldest account
This is especially true if you're younger and have a less substantial credit history. Closing an account early in your credit history may indicate risk and negatively affect your credit score. Instead, consider canceling cards with high interest rates or annual fees.
Discover® is now part of Capital One.
On May 18, 2025, Discover merged into Capital One. We're one company under Capital One, N.A. 2.
Capital One says customers shouldn't expect any immediate changes to accounts following its merger with Discover. In the coming months, Capital One account holders may get cashback debit cards and other rewards, experts say. Discover customers will gain access to more than 250 bank branches and more than 60 cafes.
With The Final OKs, the Capital One-Discover Combo Sets a May 18 Closing. More than a year after Capital One Financial Corp. announced its $35-billion deal to acquire Discover Financial Services, it received the last federal regulatory approvals to move ahead and has set a May 18 closing.
Our merchant acceptance has grown in the decades since. Partnerships: Some retailers have exclusive agreements with other card issuers. For example, Costco is a major retailer that doesn't accept Discover based on a partner contract with another major card carrier.
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.
After 6 months of missed payments, Discover may close your account permanently. However, you are still responsible for the full amount you owe. Your account may be charged off. Your balance becomes due in full and the charge-off can remain on your credit history for up to 7 years.
The 2/3/4 rule is a guideline, primarily used by Bank of America, that limits how many new credit cards you can get: no more than 2 in 30 days, 3 in 12 months, and 4 in 24 months, helping to prevent over-application and manage hard inquiries on your credit report. While not universal, it's a useful benchmark for responsible card application, though other banks have different rules (like Chase's 5/24 rule).
Pay off your credit card balance.
Just because you shred your cards and vow to never use them again doesn't mean they're out of your life just yet. You still have to close the accounts. But you won't be able to officially close your credit card account until your balance is zero.
U.S. Discover was acquired by Capital One on May 18, 2025. As a result of the acquisition, all Discover Financial brands would be offered as the Capital One brands and services.
Discover charges merchants more for card acceptance
While Visa and Mastercard charge around 2% per transaction, the Discover rate can be 1% more for a total of 3%.
You may be eligible to recover funds from the $1.22 billion Discover Class Action Settlement regarding overcharged interchange fees if your business accepted Discover credit cards for payment between January 1, 2007, and December 31, 2023.