Discover Card is a credit card issued primarily in the United States. It was introduced by Sears in 1985. When launched, the Identification Card is not subject to annual fees and offers a higher-than-normal credit limit, a feature that disrupts the credit card industry. The next innovation is a "money back bonus" on the purchase.
Most Discover branded cards are issued by Discover Bank , formerly Greenwood Trust Company . Discover Card transactions are processed through the Discover Network payment network. In February 2006, the company announced that it would start offering Discover Debit cards to banks, made possible by the Pulse payment system, which Discover was obtained in 2005.
Discover Card is the fourth largest US credit card brand, behind Visa, MasterCard, and American Express, with nearly 44 million cardholders.
Video Discover Card
History
By the time Discover Card was introduced, Sears was the largest retailer in the United States. It has bought brokerage organizations Dean Witter Reynolds and Coldwell, Banker & amp; Company (real estate) in 1981 as an effort to add financial services to its customer service portfolio. Ray Kennedy, Sr., country daddy Ray Kennedy and credit manager for Sears, drew up the cards. Together with Discover Card (and its issuing bank, Greenwood Trust Company, owned by Sears), it is named Sears Financial Network. The Early Discovery Card has a small embossed symbol representing the Sears Tower, then the company headquarters.
Discover was part of Dean Witter, and then Morgan Stanley, until 2007, when Discover Financial Services became an independent company. Novus was once the main processing center partnering with the company. The Novus logo has been retired, replaced by the Discover Network logo.
Unlike other attempts at creating credit cards to compete with MasterCard and Visa, such as the Citibank Prize card, Discover Card earns a large national consumer base. There is no annual fee, which is not common at the time, and offers a credit limit that is usually higher than similar cards. The cardholder can also earn a "Money Back Bonus", in which a percentage of the amount spent will be returned to the account (from 1% to 5%) depending on how much the card is used. A 1989 study found that Discover cards have a strong consumer adoption in the US; the number of households with Discover cards increased by 2.1 million, or 14 percent, in 1989. The Discover Card is also worth noting for being the only credit card accepted by the US Customs Service to pay for customs, effective February 19, 1987. Because not to charge a retailer a fee, unlike Visa, MasterCard and American Express, the Discover Card is also the only credit card accepted at Sam's Club; retailers have since begun receiving MasterCard, and American Express (see below).
The plan to create a one-stop financial service center at the Sears store was not as successful as Sears had expected, and his promotions from Discover Card were thought to damage Sears's turnarounds and to limit potential cards. Other retailers reject it, because they believe they will help their competitors.
Given these developments, and with strong competition both from Walmart and from so-called killer categories like Toys "R" Us, Sears began to face difficulties in the late 1980s. Discover Card Discoveration is expensive; Sears's Discover credit card operations lost $ 22 million in the fourth quarter of 1986, and lost $ 25.8 million in the first quarter of 1987. Sears sold its financial business in 1993, and began receiving MasterCard and Visa in addition to its store credit card and Discover Card. Discover cards become part of the financial services company Dean Witter. Dean Witter Discover joined Morgan Stanley in 1997. In 2000, Greenwood Trust changed its name to Discover Bank.
By 2015, due to the growth of the UnionPay card processor, Discover has become the most widely accepted card in the world.
Global Alliance
Starting around 2005, to increase revenue worldwide. Discover Card has established several agreements with other payment networks. Some key examples include:
- UnionPay in China
- JCB in Japan
- RuPay in India
- Verve in Nigeria
- TROY in Turkey
Find Bank
The Greenwood Trust Company was founded in 1911 and is based in Greenwood, Delaware. This was acquired by Discover Financial Services in 1985 and renamed Discover Bank in 2000. The first and original Greenwood Trust Co. location. on East Market Street is still operating and remains the only Discover Bank banking location.
Maps Discover Card
Business development
In October 2004, the Supreme Court upheld the ruling on the goodness of Discover Cards against the Visa and MasterCard exemption policies. Prior to this decision, Visa and MasterCard will not allow banks to issue Discover Cards (or American Express) if they issue Visa or MasterCard. Within days of the court decision, the Discover Card filed a lawsuit in federal court seeking damages from Visa and MasterCard. In 2005, Discover Card acquired Pulse, an electronic funds transfer association, enabling to issue and market debit and ATM cards.
Shortly after the 2004 Supreme Court ruling, Discover struck the first deal to issue a card issued by another bank, GE Consumer Finance, which began issuing credit cards to Wal-Mart retailers and its wholesale warehouse stores, Sam's Club. Transactions for both cards are processed in the Find Network. Sam's Club has exclusively received Discover Card for many years; since November 2006, he also received MasterCard for purchase. In April 2014, Walmart announced that they ended their relationship with Discover and will begin converting all Discover Network-branded cards to MasterCard starting June 2014.
HSBC has issued credit cards processed through Discover Network, and stamped with the Discover logo, since the acquisition of Metris card issuers at the end of 2005. Metris originally signed an agreement with Discover in September 2005, three months before the acquisition of HSBC.
Morgan Stanley had long wanted to sell the Discover Card business, and in April 2005 announced that they would release Discover Financial Services as an independent company within six months. In June, industry sources reported that Morgan Stanley was reviewing his plans to separate Discover. Finally, in August 2005, the company confirmed that they would not sell Discover. In another reversal, in December 2006, Morgan Stanley announced it would separate Discover as a stand-alone company at the end of August 2007. Spin-offs were completed ahead of schedule, on June 30, 2007.
In September 2012, Discover was ordered to pay a fine of more than $ 200 million and reimbursement of customer charges to resolve allegations by US federal regulators who have engaged in deceptive telemarketing tactics.
Ads
From 1998 to 2007, Discover Card had a billboard in One Times Square, just above the flagpole where Times Square Ball was placed, until Toshiba bought the space. As a result, the logo can be seen on national television during New Year's Eve, while the ball is dropped. Also find sponsoring the ball drop itself.
Since opening in 2001 to 2012, Sugarloaf Mills Mall in Lawrenceville, Georgia is named Discover Mills in a naming rights partnership with Discover Card. The slogan for the mall is "Where Discover Card is the Smart Choice." It was the first shopping center to grant naming rights to interested companies.
See also
Corporate portal
References
External links
Media related to Discover Card on Wikimedia Commons
Source of the article : Wikipedia
0 Comments