I’m a Banking Expert: 3 Ways the $35B Capital One and Discover Merger Could Impact You
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Martin Dasko
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Zuri Anderson
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According to a recent article on Kiplinger, Capital One Financial Corporation was in the process of acquiring Discover Financial Services in a $35.3 billion deal, which is expected to change the credit card landscape.
According to a survey conducted by Cardrates.com, 78% of American adults were unaware of the Capital One-Discover merger before its approval, with 66% sharing that they believed the merger wouldn’t impact their credit card usage. Since the deal was finalized on May 18, 2025, it’s worth examining how it could impact you and your financial situation.
Here are three ways the merger could impact your finances, according to banking experts.
1. Your Daily Banking Could Change
“This could create a stronger value proposition on debit cards for consumers,” said Tony DeSanctis, a banking expert and senior director at Cornerstone Advisors. “The newly formed Capital One is not subject to the same restrictions on debit rewards as other banks and credit unions. This could lead to a more compelling offering for checking and debit products for the average American consumer.”
Since Discover is one of the few lenders that offers a cash back debit card, consumers can change their approach to daily banking. With Capital One transitioning its debit card to the Discover credit card network, consumers can earn 1% cash back on up to $3,000 in debit card purchases per month.
You may find yourself with a new checking account setup that improves your finances. With a cash back debit card, you may even decide to use your checking account to cover bills and expenses over a credit card.
2. Your Credit Card Usage Habits May Have to Change
“Consumers need to be aware of changes that are going on with their credit card issuers,” remarked Bobbi Rebell, a CFP and personal finance expert at CardRates.com. “The changing landscape not only can impact the terms of their credit, but there may be new benefits for borrowers that could be worth exploring.”
The merger could impact credit card interest rates and fees, as well as the potential rewards. It’s likely that consumers may not accept these terms if fees rise or interest rates go up, and start looking to other lenders. If your credit card habits are based on rewards or certain perks, you may need to adjust your approach if the terms change. However, if the terms don’t change, then you may not make any modifications to your approach.
“The consumer opportunity could be that the credit card offerings have a more robust value proposition,” noted DeSanctis. He believes that the merger could create a bit more scale, even though Capital One was already one of the top five issuers.
While everyone has their own unique approach to credit cards, specific changes to terms can impact how you utilize credit.
3. New Credit Card Products May Become Accessible
“We could also see Capital One come out with a high-end travel card like the Amex Platinum and Chase Sapphire Reserve as a result of the better demographics of the Discover customers,” stated DeSanctis.
While speculation has arisen about new credit card products that may become available to consumers, there’s still no official information. It’s essential to stay informed about notifications and official communications to check if any new options become available to you.
If a new card becomes available, you could change how you organize your finances and handle your bills based on the unique perks.
What You Can Do To Prepare
As details about the merger and its impact on consumers become available, it’s essential to closely monitor any communication you receive from Capital One or Discover. You will likely receive updates on changes to your credit card details.
Rebell warned that it was concerning how many people weren’t aware of the major merger.
“It’s always important to read notices from credit card issuers, and this is just one more reminder that consumers need to be their own best advocates,” she added.
You don’t want to be caught off guard by any changes to your banking products. You’ll want to look out for the following information in the next year or so:
- Changes to Discover-branded products.
- New or updated credit card terms from Capital One.
- Changes in network acceptance.
- New products that may become available.
Banking experts recommend reviewing your credit card policy to familiarize yourself with key details. If there are any changes to interest rates, fees or rewards, you can always shop around to find a better option with another issuer. As always, it’s recommended that you stay up to date with any changes.
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