Capital One cardholders will likely move to the Discover payment network — but not right away

this year, Capital One plans to acquire Discover For $35.3 billion. The date and details aren’t final yet, but changes for both Discover and Capital One cardholders could be on the horizon.

Capital One said it will move its cards from the Visa and Mastercard payment networks to the Discover card network. Jason SteeleCNET Money Member of the Expert Review Board And credit card expert.

If you’re a Capital One cardholder, experts don’t expect major changes right away, but if the merger goes through, your card will likely be moved to the Discover payment network eventually.

How changing payment networks may affect you

Discover is one of Four major credit card networksIn addition to Visa, MasterCard, and American Express. Currently, Capital One offers both Visa and Mastercard credit cards but will likely slowly begin transitioning its cards to the Discover network if the acquisition goes through.

Why does this matter? The Discover network is smaller than Visa and Mastercard and is not accepted everywhere in the United States or abroad.

“Although many of the countries where Discover is not widely accepted are places that are not popular tourist destinations, some are,” Steele said. For example, Discover is not accepted in Panama, Kenya, and Serbia, according to Its website. In countries where Discover is accepted, rules can vary by store. Steele also added that Discover is not currently accepted by all major U.S. retailers, such as Costco.

However, Capital One plans to expand Discover’s payment network, which could increase its presence overseas in the future. “We still believe Visa and Mastercard play a very important role in Capital One’s future, but we can build a network and a network story that can capture more of our scale over time,” the Capital One CEO said. Richard Fairbankin a statement sent via email.

Experts believe that in the long run, this merger could be good news for both Capital One and Discover cardholders, alike.
“Capital One acquired Discover largely because of its processing network,” he said. Aaron Hurdcredit card expert and member of the CNET Money Expert Review Board. Hurd expects that over time, Capital One will expand Discover’s payment network, both abroad and in the United States. This expansion should make it easier to use your Discover card abroad, as well as any Capital One cards that move to this network.

How to prepare for Capital One and find out about the merger

Hurd expects Capital One to continue operating both brands somewhat independently for some time. “Capital One will likely not alienate Discover’s large customer base by discontinuing the Discover card brand,” he said. Hurd expects to make small changes to the products after the acquisition.

If you rely on your Capital One credit card as your primary payment method, you’ll likely eventually be transferred to the Discover network. Although there are plans to expand this payment network, if you’re worried about traveling abroad, Steele suggests looking for a backup Visa or Mastercard option.

This acquisition has not been finalized, but experts expect it to be completed. If the merger goes through, look for updates from Discover or Capital One about any changes.