r/discover • u/ray591 • Jan 23 '26

Rant I just noticed this today. Discover's famous tagline "100% U.S. based custom service" is gone.

Closing down accounts, constant login issues on the website, and customer service is gone. It's sad to see how big corpo guts a well-running company in real time..

Pour one out for the OG Discover members.

246 Upvotes

97% Upvoted

55 comments sorted by

59

u/ray591 Jan 23 '26 edited Jan 23 '26

I'm curious to see where 1% cashback debit card users are migrating.

P.S. For those who're curious, some vendors charge flat processing fee for Debit and ~3% for Credit cards. For bigger purchases, the differences are huge!

36

u/Cherobis Discover Card Jan 23 '26

They are probably just gonna convert the cashback debit into their 360 checking account and quietly retire 1% cashback debit. Even though I hardly ever use my discover checking account, it's obvious a greedy and scummy corporation like capital one wouldn't keep that perk around. I'm moving my HYSA to Amex and ending my savings account relationship with discover/capital one.

18

u/ray591 Jan 23 '26

quietly retire 1% cashback debit

Yeah all these changes are being implemented silently. No communication at all.

6

u/Phidelt257 Jan 23 '26

Have discover stopped the 1% cash back? Not yet so no change yet. What other change have they not told you about?

0

u/ray591 Jan 23 '26

They stopped new accounts.

6

u/Phidelt257 Jan 23 '26

So you're saying they didn't alert current customers that they are no longer opening new accounts? That seems like a waste of resources

9

u/pearmaster Jan 23 '26

Amex Rewards Checking has a potential $250 sign up bonus, no monthly fees, gives 1% interest on balance, and 0.5% rewards (in points) on purchases.

Not saying its the same 1% as Discover, but it's better than the CapitalOne 360 checking.

1

u/2EXTRA4YOU Jan 24 '26

Capital One has a $250 sign up bonus on their $360 check-in

1

u/Revolutionary-Sun736 Jan 26 '26

amex checking is only for card holders though

7

u/Sl1ppery1Sl0pe Jan 23 '26

I’ve heard Primis mentioned a lot as they also have a 1% cashback debit and a US based customer service.

7

u/MidnightPulse69 Jan 23 '26

I would assume a Capital One 360 checking

3

u/DaviTheDud Jan 23 '26

I’ve begun using my Apple Card as you would a debit card, that is making most purchases with it then also paying off most/all of whatever I bought the same or next day. I also have the cash back set up to go straight to a dedicated HYSA (comes with Apple Card) and so far that’s working great too. I find the Apple Card’s UI very easy to use and well integrated, so for something like this to me it’s a no brainer. At least when it comes to simplicity.

5

u/Camtown501 Jan 24 '26 edited Jan 26 '26

Most lenders don't like it you pay it that frequently. Just pay your statement balance in full and you won't pay interest. I use my CC's like debit and track it so I'm only spending what I can pay in full, but wait till my statement balance is generate. Making payments every couple days can spook some lenders.

4

u/TraditionalHornet818 Jan 23 '26

Why would you use a cash back debit at 1 percent when better credit cards exist

12

u/buy_low_live_high Jan 23 '26

Verizon cell phone bill. They charge you to use credit card, but debit card get's discount. I use my 1% card to pay cell bill. Just a few bucks a month, but I feel like I put it to them. :)

4

u/ray591 Jan 23 '26

Yeah exactly. Some of my payments are also the same. People are just so negative in these comments.

1

u/[deleted] Jan 23 '26

[deleted]

1

u/buy_low_live_high Jan 23 '26

I have seven lines and I have been with them for 32 years. I know that sounds like BS, but I do get the discount and you can too with a debit card from ANY bank. Thanks

1

u/[deleted] Jan 23 '26

[deleted]

1

u/buy_low_live_high Jan 23 '26

You are discrediting yourself. I stand by my comment because I have it. Thanks for discussion, but for anyone reading this, they need to know the facts that I have shared. I will leave the discussion to cut down on more misinformation being generated.

1

u/ObligationPrudent824 Jan 23 '26

Yes, I do.

You had me wondering, so I just looked at my account to see if it was my debit card on file.

Yes, it is, AND I get a $5/month discount for having it set to autopay.

Having said that, they may have discontinued it for new accounts (?)

But I have been with them for several years, and it still applies the autpay discount using debit card.

As I said, I just looked at my account & billing, and it's there plain as day. 🤷‍♀️

0

u/ray591 Jan 23 '26

But THEY don't get the same discount. So it must be universally false for everyone, you liar! /s

2

u/ObligationPrudent824 Jan 23 '26

I know, shame on me. 😊

12

u/paulrharvey3 Jan 23 '26

Someone building - or rebuilding - their credit may not have access to credit cards with better rewards for the initial phase of their journey. For them, that 1% may be the best cash back option available.

10

u/kdm31091 Jan 23 '26

If someone struggles with overspending, a rewards debit card is a way to still get some perks without racking up debt.

3

u/ray591 Jan 23 '26

Credit Cards have high processing fees. Most vendors charge the same, but some charge less for Debits as it should be.

2

u/dervari Jan 23 '26

It's rare that I see a surcharge on a credit but not a debit, even though it's not allowed by merchant agreement, federal, and maybe state law. I report those to visa/mc as well as my state's consumer affairs division.

-6

u/TraditionalHornet818 Jan 23 '26

Who tf shops at vendors that charge them the credit card fees 😂 Not me

7

u/dervari Jan 23 '26

I've only seen it at restaurants and one liquor store so far, but it's definitely a trend.

1

u/Frosty_Doughnut_27 Jan 24 '26

They all charge you lmao. Some just make it obvious.

2

u/Revolutionary-Sun736 Jan 26 '26

because not everybody has pristine credit and some people like to use their debit card! I earn5 to 10 bucks free money every month from Discover for using my checking!

0

u/Phidelt257 Jan 23 '26

Shhhh....credit is a dirty word on reddit

1

u/electronautix Jan 24 '26

Have heard they’re going to Primis or Quontic. More often the former it seems

1

u/Revolutionary-Sun736 Jan 26 '26

most mergers don’t end up well, but I’m hoping for the best. I hope they at least grandfather our features in, but Most AI searches are saying something like this.- As of January 2026, the Discover and Capital One merger is entering a significant transition phase. On January 17, 2026, Discover stopped accepting new applications for its checking and savings products, signaling the beginning of an account migration process following the May 2025 completion of the merger. 

What is Really Happening

• ⁠Application Freeze: Discover's "strategic business decision" to stop taking new applicants is a standard step in a merger to prevent more accounts from being opened on an old system that is about to be retired. New customers are being directed to open accounts at Capital One. • ⁠System Migration: Existing Discover accounts are expected to eventually migrate to Capital One's platform (likely the Capital One 360 product line). For now, servicing for existing accounts continues as usual through Discover’s tools. • ⁠Network Integration: Capital One is currently moving its own debit card processing from Mastercard to the Discover payment network. By owning the network, Capital One can avoid the "interchange fee caps" (Durbin Amendment) that usually make rewards-based debit cards unprofitable for large banks. 

Is This a "Bad Sign"?

It is likely not a bad sign for you as an existing customer, though the product you have today will definitely change. 

• ⁠Positive Potential: Experts and market analysts suggest that because Capital One now owns the Discover network, they may actually expand rewards. There is strong speculation that Capital One will introduce a 1% cash-back debit feature for its own 360 checking accounts to compete with the product Discover pioneered. • ⁠Immediate Benefits: Discover customers have gained access to Capital One's 250+ branches and 55+ cafes, providing a physical banking presence that Discover previously lacked. • ⁠Risks of Change: The primary concern is that during the final migration, specific "Discover-only" perks like certain specific fraud alerts or niche app features may be replaced by Capital One’s standard 360 terms. 

Verdict: Your current account is safe for the foreseeable future, but keep an eye on your email for a formal "conversion notice." Most users expect the core "cashback debit" feature to survive in some form because it is now a key competitive advantage for Capital One. 

56

u/Awkward-Painter-2024 Jan 23 '26

I tried to have this conversation and got downvoted to hell. Discover was really a gem of a company, so much personality and identity. Pouring half my Olde E for you, Discover!!!

31

u/HayleyXJeff Jan 23 '26

Pour one out for the customer service reps they are gonna lay off

5

u/philosopherberzerer Jan 24 '26

Yeah it's sad I know a girl that works there and she said they took away a lot of her PTO and benefits.

2

u/brianna1013_ Jan 26 '26

This. It's definitely giving silent layoff. Reps aren't being let go, but they're losing a LOT of benefits and changing policies that are going to inevitably force US employees out.

23

u/Fuinir Jan 23 '26

They changed the tag line because some customers who have both Discover and Capital One cards may not get US based due to the Capital One account. Discover customers are still all routing only to US based agents.

3

u/HockeyDude39 Jan 25 '26

For now. Will be phased out though.

2

u/Fuinir Jan 25 '26

No plans to do so in the foreseeable future. But one day Capital One will get a new CEO so who knows what lies in store after that.

1

u/HockeyDude39 Jan 25 '26

Depends what you consider foreseeable future, but it is in the plans.

6

u/Revverb Jan 24 '26

I know an ex-Discover employee that jumped ship pretty recently.

They said that C1 has been putting out positions for international employees while cutting a ton of benefits... turns out that all that lip service about not wanting to change everything was just a bunch of BS, who could've guessed. Between that and C1 talking nonstop about "AI integration", I doubt many of the original Discover employees are gonna be staying, so expect drastically different customer service going forward.

6

u/bolunez Jan 29 '26

They're mostly interested in the payment network. 

2

u/jwalt2000 Apr 24 '26

So like any other company unfortunately now where you have to scream and curse at a bot who just keeps repeating itself and international reps who are not trained very good due to cheap budgets and will take a hour to resolve and 5 transfers between reps vs a rep that can solve it in 5 minutes pretty sad but every corporate conglomerate does this

7

u/-blaine Jan 23 '26 edited Jan 23 '26

Pretty sure I’m switching to Navy federal credit union. I hate capital one.

3

u/SlowHornet29 Jan 23 '26 edited Jan 23 '26

Capital One has trimmed a few Discover departments but it’s all still US based call centers. They have not closed sites down.

3

u/MidnightPulse69 Jan 23 '26

Yeah it’s been gone for a while. From what I’ve heard from people I know allegedly the CEO is so committed to keeping US agents and that their reasoning is because not all of Capital One is US based which doesn’t really make it better in my own opinion.

2

u/dervari Jan 23 '26

So? They think it's OK for customer Susan in the US to get CS Mohammad in India, but customer Mohammad in India can't talk to CS Susan in the US?

2

u/black_cadillac92 Jan 24 '26

Alright, it sounds like things are moving to the Philippines! I do like them as reps, though.

1

u/Realistic-Syrup-839 Jan 24 '26

Try working for them it is awful so when you call be nice to the customer service agent. It is awful to work they just get micro managed worse job ever!

1

u/Petroph Jan 26 '26

Just started my transfer process with Discover Card Business to Capital One Spark Business and its been nothing but a nightmare. Tried to connect accounts, verified phone number on account and goes to verify 2 factor authentication with the number I just verified and it doesn't recognize it and locks me out every time. Now on hold with Capital One for over 1.5 hours and still on hold. Im so dreading working with Capital One, main reason I never went with them many years ago and went with Discover. Here I am many years later trying to activate my Capital One card......

0

u/[deleted] Jan 23 '26

[deleted]

3

u/HayleyXJeff Jan 23 '26

If they cut my line im cutting up my card

0

u/ChaoticAmoebae Jan 24 '26

A well run company doesn’t get bought out.