Capital One and Discover’s $35.3B Merger Approved — Here’s What It Means for Your Wallet
The $35.3 billion deal reshapes the credit card landscape — and could impact your rewards, interest rates and card perks.

Two of the largest credit card companies are planning to merge, and it could have big implications for your wallet.
Under the Capital One Discover merger, the Capital One Financial Corporation would acquire Discover Financial Services. On April 18, Capital One reported that the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency approved the merger, allowing the acquisition to proceed.
“This is an exciting moment for Capital One and Discover. We understand the critical importance of a strong and competitive banking system to our customers and our economy, and we appreciate the thoughtful and diligent engagement of our regulators as they thoroughly reviewed this deal over the past 14 months,” said Richard Fairbank, Founder, Chairman and CEO of Capital One.
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“The combination of our two great companies will increase competition in payment networks, offer a wider range of products to our customers, increase our resources devoted to innovation and security and bring meaningful community benefits,” said Michael Shepherd, Interim CEO and President of Discover.
According to the press release, the merger is expected to close on May 18, and Capital One and Discover customer accounts will see no immediate changes.
For the time being, Capital One and Discover customers’ service will continue through their current platforms.
How the Capital One Discover merger could impact your interest rates
The Capital One Discover merger means that Capital One will become an even larger player in the credit card market than it already is.
Any time one company starts to dominate a market, it can lead to reduced competition, allowing that company to raise prices or implement policy changes with less concern of attracting or maintaining customers.
A coalition of 30 community, consumer, civil rights and public interest groups questioned the merger, and in a post on X, Senator Elizabeth Warren (D-MA) predicted that the merger will "increase fees and credit costs for American families."
The merger may impact Capital One and Discover customers’ credit card interest rates and fees, but no one can say for certain just what those impacts may be. It’s possible that if interest rates and fees increase, Capital One and Discover cardholders might use their cards less or cancel their cards in response.
It’s also possible that borrowers with good or excellent credit scores might seek out other credit card companies, leaving Capital One with a pool of higher-risk borrowers with lower credit scores.
To avoid this scenario, Capital One might only implement small rate or fee increases, or the company might choose not to increase rates at all.
How the Capital One Discover merger could affect your debit card rewards
Capital One has announced that it plans to transition its debit cards to the Discover debit card network after the merger. That’s significant because Discover is one of few lenders which offers a cash back debit card.
Typically, debit cards don’t come with rewards, but with Discover’s Cashback Debit card, you can earn 1% cash back on up to $3,000 in debit card purchases each month. The checking account is fee-free, and rewards never expire.
Since Discover is already offering rewards to debit cardholders, it’s possible that Capital One debit cardholders might also become eligible for new and additional rewards once the merger takes place.
How to prepare for the Capital One Discover merger
Before the merger takes place, it’s a good idea for Capital One and Discover cardholders to look up their credit card policy.
Print out a copy of your policy and review key details, like your card’s interest rate, fees and rewards.
Pay attention to any communication you receive from Capital One or Discover in the coming months and make sure that your contact information is up-to-date.
Chances are that cardholders will receive updates as the merger approaches and takes place, and these updates should include details about any important changes, including in interest rates, fees and rewards.
If you find that you don’t like the changes that are announced, remember that you can always shop around for a new credit card with a different company.
Focus on improving your credit score by making all of your payments on time and minimizing your credit usage. With a higher credit score, you’re more likely to qualify for a wider variety of cards, so you’ll have more options if you decide to choose a new credit card.
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Paige Cerulli is a freelance journalist and content writer with more than 15 years of experience. She specializes in personal finance, health, and commerce content. Paige majored in English and music performance at Westfield State University and has received numerous awards for her creative nonfiction. Her work has appeared in The U.S. News & World Report, USA Today, GOBankingRates, Top Ten Reviews, TIME Stamped Shopping and more. In her spare time, Paige enjoys horseback riding, photography and playing the flute. Connect with her on LinkedIn.
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