Capital One sparks outrage with ‘unacceptable’ card change as customers threaten boycott

A RECENT move by Capital One has customers up in arms, with the controversial card change even prompting threats to switch banks.

As Capital One switches its payment network over to Discover, cardholders fear that they will run into an increasing number of payment issues.

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Capital One is in the process of transitioning some of its cards to Discover following the banking giant’s acquisition of Discover Financial Services back in May.

While Capital One credit cards will continue to use Visa and Mastercard networks for the time being, debit card users will receive new cards with updated information.

Some customers have welcomed the change, with one Reddit user calling the move “great news.”

“A stronger Discover network means more competition for Mastercard, Visa, and Amex. More competition always benefits consumers,” they wrote.

Others, however, are less fond on the network change, with a Capital One customer of nearly 20 years airing their grievances on another Reddit thread.

They explained that, despite traveling plenty in the US and Europe, they never had any issues using their Capital One debit card.

“Well, I just got the new debit card only to find that it’s not a Visa or Mastercard but Discover. This is a big issue,” complained the customer.

They noted that while Visa and Mastercard are accepted most places, from local businesses and remote gas stations to family owned restaurants and major corporate businesses, that is not the case for Discover.

“This change is unacceptable,” fumed the Capital One user. “I have a credit card with them, a savings account, and a checking account. I guess I have to transfer to another bank.

“Did I say I’m pissed about this? Well, I’ll say it again, ‘I’M PISSED!’”

While many users in the comments section were frustrated by the switch-up, one Redditor suggested that more people using the Discover network would encourage more countries internationally to accept the cards.

“I predict that we will be seeing some well deserved investment into the Discover network, especially internationally,” said the user.

The U.S. Sun reached out to Capital One about the network change but did not hear back immediately.

DONE DEAL

Capital One’s $35 billion acquisition of Discover was approved in April by the Office of the Comptroller of the Currency.

Why don’t retailers take certain cards?

Retailers often opt not to accept certain credit cards, such as Discover, thanks to higher processing fees in comparison to other networks.

Dubbed “swipe fees,” these charges are a percentage of each transaction that the merchant must pay. Even a small difference can have a major impact on a company’s profits, especially for small businesses with thin margins.

Some credit card companies, such as Discover and American Express, have historically charged steeper rates than Visa and Mastercard, pushing some retailers to not accept them.

The smaller number of Discover cardholders compared to Visa or Mastercard is another reason that some businesses do not accept it.

Then, the long awaited acquisition was completed in May, more than one year after it was originally proposed.

Richard Fairbank, the top executive at Capital One, emphasized that the deal was carefully decided upon.

“This is an exciting moment for Capital One and Discover,” the CEO said in a press release.

“We understand the critical importance of a strong and competitive banking system to our customers and our economy.

“We look forward to bringing these two great companies together with a profound sense of possibility and responsibility to deliver for our customers, associates, shareholders, and communities.”

The interim CEO and president of Discover, Michael Shepherd, also detailed that the acquisition would bump up competition in payment networks.

Additionally, he promised that customers would see a “wide range of products” and increases in “resources devoted to innovation and security, and bring meaningful community benefits.”