Get ready, the Discover-Capital One merger could transform the credit card market
Julian Morris, senior scholar at ICLE, was quoted in this Fortune article about what customers can expect from the Capital One and Discover merger. Read the full article here.
For now, analysts suggest that Capital One might take a more cautious approach toward moving all cards to Discover right away.
“While there could be certain advantages to Cap One of such a shift, there would be very significant short-term costs that militate against moving existing Cap One cardholders over to Discover,” says Julian Morris, Senior Scholar at the International Center for Law & Economics.
Morris specified that costs would include renegotiating terms with reward and co-brand partners and issuing new physical cards with a new customer agreement (which can cost more than $5 for each card).