Capital One's Merger With Discover: What Changed and What Stayed the Same

Capital One is merging with Discover Financial Services

Capital One announced in February 2024 that it would merge with Discover Financial Services, creating a combined company that will operate under the Capital One name. The deal was expected to close in late 2024 or early 2025, pending regulatory approval. When complete, the merged entity will be one of the largest credit card issuers in the United States, combining Capital One's credit card and banking products with Discover's credit card network and personal loan business.

This is a merger of equals in structure, meaning both companies' shareholders vote on the deal and both boards approve it — it is not one company buying another outright. Discover shareholders will receive one share of the new Capital One for each Discover share they own, plus cash. The combined company will keep the Capital One brand and headquarters in Richmond, Virginia.

Key Takeaways

• Capital One and Discover are merging into a single company operating under the Capital One name, with the deal expected to close in late 2024 or early 2025.
• Discover cardholders will keep their cards and accounts; the Discover card network will continue to operate as it does now.
• Capital One customers should see no when ready changes to their accounts, card benefits, or how they access their accounts online or by phone.
• The merger still requires approval from banking regulators, including the Federal Reserve and the Office of the Comptroller of the Currency.

What happens to Discover cardholders

If you hold a Discover card, your account will not close and your card will remain active. Discover cards will continue to work at merchants that accept them. The Discover card network — the system that processes your transactions — will continue to operate. You will still earn cash back or other rewards according to your card's terms, and your billing statements and payment methods will work the same way.

Over time, the merged company may integrate some systems or change how accounts are managed behind the scenes, but Discover has stated that cardholders should expect no disruption to their service during the transition. If changes to your card's terms, benefits, or fees occur after the merger closes, you will receive notice by mail or email as required by law.

What happens to Capital One customers

Capital One customers — whether you hold a credit card, savings account, checking account, or auto loan — should see no when ready changes. Your account will continue to operate as it does now. You will still log in to the same online banking portal or mobile app, make payments the same way, and reach customer service through the same phone numbers.

The merger does not mean Capital One is closing or being absorbed into another company. Capital One remains the operating name and brand. Any future changes to products, fees, or features will be communicated to you in advance, as they are now.

Why Capital One and Discover are merging

Both companies stated that the merger creates a larger, more competitive credit card and banking company. Capital One brings credit cards, deposit accounts, and auto lending. Discover brings its own credit card brand, a personal loan business, and the Discover network that processes card transactions. Together, the combined company will have more scale — meaning lower costs per customer and more resources to invest in technology and customer service.

The merger also means the combined company will own both a credit card network (Discover) and card-issuing operations (Capital One), which is a structure that only a few large financial companies have. This can reduce costs by eliminating fees the company would otherwise pay to other networks.

Regulatory approval and timeline

The merger requires approval from the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Trade Commission (FTC). These agencies review whether the merger would reduce competition or harm consumers. Both Capital One and Discover have said they expect approval, though regulators can take months to complete their review and may impose conditions on the deal.

Capital One and Discover announced the merger in February 2024 and expected it to close by the end of 2024 or early 2025. If regulators delay approval or request changes, the closing date could move later. You can check the companies' investor relations websites or press releases for updates on the timeline.

What does not change about your accounts

Your account numbers, routing numbers, and card numbers will not change when ready. If you have automatic payments set up — for utilities, subscriptions, or loan payments — you should not need to update them. Your credit history and credit score will not be affected by the merger itself.

If you have money in a Capital One savings or money market account, it remains FDIC-insured up to $250,000 per account type, just as it is now. The merger does not change FDIC insurance coverage. Your login credentials and security settings will continue to work as they do now, though the company may eventually migrate accounts to a unified platform after the merger closes.

Frequently Asked Questions

Will my Discover card stop working after the merger?

No. Discover cards will continue to work at merchants that accept them. The Discover network will keep operating, and your account will remain open. The merged company has stated that cardholders should expect no disruption to service.

Do I need to do anything now that the merger was announced?

No action is required. Your accounts will continue to work normally. If changes to your account terms, benefits, or fees occur after the merger closes, you will receive notice by mail or email. You do not need to contact the company or update your information.

Will my interest rates or fees change because of the merger?

Not automatically. Interest rates and fees are set by the terms of your specific account and card. After the merger closes, the company could change terms, but it must notify you in advance and give you time to respond, as required by law. Changes to existing accounts typically require 30 to 60 days' notice.

What if the merger does not get approved?

If regulators deny approval, both Capital One and Discover would continue to operate as separate companies. Your accounts would remain unchanged. Either company could also walk away from the deal if conditions imposed by regulators are unacceptable, though both have stated they expect approval.

Where can I find updates on the merger?

Capital One and Discover both post merger updates on their investor relations websites. You can also check their press release sections or sign up for email updates. The Federal Reserve and OCC do not publish merger timelines publicly, but major decisions are typically announced by the companies once regulators make them.