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What customers need to know about the Discover, Capital One merger

“Are our bank accounts going to vanish?”

Photo of Nina Hernandez

Nina Hernandez

capital one discover merger
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Discover and Capital One credit cards are in the process of merging. Here’s what that means for your accounts and what the internet has to say about it.

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Capital One closed its purchase of Discover in May, and this will eventually lead to some changes for card holders. In the near-term, Capital One card holders will still use Visa or Mastercard as payment networks. And as for the long-term, the company plans to enhance Discover’s credit card network services.

In the past, Discover struggled to compete with industry titans Visa and Mastercard. If Capital One can boost its presence in the market, credit card holders could eventually see lower swipe fees. That’s money in the consumer’s pocket.

Eventually, Capital One card holders will probably transfer over to the Discover payment network. Capital One isn’t changing its terms at the moment, but if it does the company will tell its card holders ahead of time. Discover’s terms are changing to reflect its new ownership.

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Personal finance influencer weighs in

If you need to process this information in TikTok, personal finance influencer Mikey Caloca (@mikeycaloca) posted a video on Saturday with an overview of the fine print of the agreement. “This is going to be a slow merger,” Caloca explained. “This is not going to be just one day you wake up and your Discover is gone.”

He continues, “What happens next is what everyone is so worried about. Are our bank accounts going to vanish? Are our credit cards going to close and go away? No, dude. It’s going to be a smooth transition. They said it right there. We don’t even know what’s going to happen yet, but I can tell you from first-hand experience of banks transferring. This is going to be months long.”

Calcoa said he believes consumers will have small features added over time. “It’s not a big deal; it’s going to be kind of cool,” he says.

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