Capital One announced plans last year to acquire Discover in 2025 for $35.3 billion. The upcoming acquisition isn’t final but could spell changes for Capital One cardholders currently on Visa or Mastercard networks.
“Capital One has said that it will transition its cards from the Visa and Mastercard payment networks to the Discover card network,” said Jason Steele, a CNET Money expert review board member and credit card expert.
If you’re a Capital One cardholder, this could limit where you can use your credit card.
How a Capital One payment network change could impact you
Discover is one of the four major credit card networks, along with Visa, Mastercard and American Express. Right now, Capital One offers both Visa and Mastercard credit cards but would shift to Discover if the acquisition goes through.
Why does this matter? Discover’s network is smaller than Visa and Mastercard and isn’t accepted everywhere in the US or abroad.
“While many countries where Discover isn’t widely accepted are places that aren’t popular tourist destinations, some are,” Steele said. For example, Discover isn’t accepted in Panama, Kenya and Serbia, according to its website. In countries where Discover is accepted, the rules can vary by store.
Steele also added that Discover isn’t currently accepted at all major US retailers, such as Costco.
How to prepare for the Capital One and Discover merger
If you depend on your Capital One credit card as your primary payment method, you may want to look for a backup Visa or Mastercard option — especially when traveling abroad. This will ensure you’re able to cover a payment if a merchant doesn’t accept cards on the Discover network.
Although this acquisition isn’t a guarantee, experts expect it will pass. If the merger goes through, keep your eye out for updates from either Discover or Capital One about any changes.