M&A News: What the Capital One–Discover $35B Merger Means for Cardholders
Eric Fruits, senior scholar at ICLE, is mentioned in this The Globe and Mail article about the Capital One-Discover $35 billion merger means to credit and debit cardholders. Read the full story here.
Eric Fruits, a senior expert at the International Center for Law and Economics, says that one of Capital One’s first steps after the merger will probably be to switch its debit cards to use Discover’s payment network. This change could increase the fees Capital One earns from card swipes, bringing in more money. Fruits added that within the next few months or a year, customers might see new rewards debit cards. Because of the merger, Capital One can bypass certain rules (called the Durbin amendment), allowing it to offer better rewards. This could be a big benefit for Capital One and its customers.