{"id":28229,"date":"2024-02-22T03:01:49","date_gmt":"2024-02-21T21:31:49","guid":{"rendered":"https:\/\/farratanews.online\/how-capital-ones-acquisition-of-discover-could-impact-consumers\/"},"modified":"2024-02-22T03:01:49","modified_gmt":"2024-02-21T21:31:49","slug":"how-capital-ones-acquisition-of-discover-could-impact-consumers","status":"publish","type":"post","link":"https:\/\/farratanews.online\/how-capital-ones-acquisition-of-discover-could-impact-consumers\/","title":{"rendered":"How Capital One’s acquisition of Discover could impact consumers"},"content":{"rendered":"

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Portfolio Wealth Advisors President and CIO Lee Munson discusses the expected release of big bank earnings, the Feds rate cuts and shares his market outlook for the year.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

In the wake of Capital One announcing plans to purchase Discover earlier this week, opposing views have already emerged over whether the deal \u2013 if it goes through \u2013 will be good or bad for consumers.<\/p>\n

One camp argues that the acquisition would benefit consumers because it combines two major players in the industry and puts Capital One in a better position to compete with dominant behemoths Visa and Mastercard, thereby driving down costs.\u00a0<\/p>\n

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\"Capital<\/source><\/source><\/source><\/source><\/picture><\/div>\n
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Capital One is reportedly considering the acquisition of Discover.<\/span> (Capital One: Craig Warga\/Bloomberg via Getty Images | Discover: Tiffany Hagler-Geard\/Bloomberg via \/ Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n

John Berlau, director of finance policy at the Competitive Enterprise Institute (CEI), said in a statement, “This proposed merger of a credit card issuer with one of the relatively smaller credit card networks comes at a time when there are numerous\u00a0payment\u00a0options, including Venmo and\u00a0Zelle, and new credit options such as buy-now-pay-later.”<\/p>\n

STUDENT LOAN PAYMENTS MAY BE TO BLAME FOR A SPIKE IN CREDIT CARD DELINQUENCIES<\/strong><\/p>\n

He noted that Discover is the fourth-largest payment network, and far behind its rivals in its share of the credit card market.<\/p>\n\n\n\n\n\n\n\n\n
Ticker<\/th>\nSecurity<\/th>\nLast<\/th>\nChange<\/th>\nChange %<\/th>\n<\/tr>\n<\/thead>\n
COF<\/td>\nCAPITAL ONE FINANCIAL CORP.<\/td>\n135.00<\/td>\n-2.41<\/td>\n-1.75%<\/td>\n<\/tr>\n
DFS<\/td>\nDISCOVER FINANCIAL SERVICES<\/td>\n120.58<\/td>\n-3.14<\/td>\n-2.54%<\/td>\n<\/tr>\n
V<\/td>\nVISA INC.<\/td>\n276.75<\/td>\n+1.38<\/td>\n+0.50%<\/td>\n<\/tr>\n
MA<\/td>\nMASTERCARD INC.<\/td>\n459.06<\/td>\n+7.06<\/td>\n+1.56%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

“By boosting this card network\u2019s resources, the merger could actually create more robust competition against Discover\u2019s bigger rivals, leading to an increase in benefits for consumers,” Berlau argued.<\/p>\n

CREDIT CARD DEBT SMASHED ANOTHER RECORD HIGH AT THE END OF 2023<\/strong><\/p>\n

The other side says the deal would consolidate the industry further, providing Capital One with more leverage to lift fees.<\/p>\n

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\"Senator<\/source><\/source><\/source><\/source><\/picture><\/div>\n
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Sen. Elizabeth Warren speaks during a Senate Banking, Housing, and Urban Affairs Committee hearing in Washington, D.C., on May 16, 2023.<\/span> (Al Drago\/Bloomberg via \/ Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n

Progressive Sen. Elizabeth Warren, D, Mass., a member of the Senate Banking Committee, took to X to call for regulators to stop the deal.<\/p>\n

“The merger of @CapitalOne and @Discover threatens our financial stability, reduces competition, and would increase fees and credit costs for American families,” Warren wrote. “This Wall street deal is dangerous and will harm working people. Regulators must block it immediately.”<\/p>\n

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Capitol One Financial Corp<\/strong><\/p>\n