Capital One begins migration of credit cards to Discover

Capital One has completed the conversion of approximately 25 million debit cards to the Discover network and is now focusing on credit card accounts. During a quarterly earnings call, the company announced testing with selected credit cards on the Discover network, moving away from the Visa network they previously operated on. The Venture X card, along with co-branded cards for T-Mobile, Kohl’s, and Bass Pro Shops/Cabela’s, remains on Visa, though this may change as the migration progresses. According to Chairman and CEO Richard Fairbank:

"We are intensely focused on testing the creation of legacy Capital One accounts on the Discover network, as well as testing the conversion of existing accounts to that network."

A massive migration

Capital One plans to begin converting its existing Discover portfolio, known as the "back book", at the end of July, with new waves of migration scheduled for October and January. The company indicated that it remains on track to achieve the $2.5 billion in expected synergies from the merger by the second half of 2027. The Capital One-Discover merger, finalized in May 2025, has unfolded in phases.

One of the challenges is Discover's limited international acceptance compared to Visa and Mastercard. During the earnings call, Capital One stated that it is working to expand Discover's global acceptance, focusing on markets like Mexico, the Caribbean, Canada, and the United Kingdom.

A slower start for Discover

Discover's performance has been mixed since its integration into Capital One. Purchase volume on Discover cards grew less than 2% year-over-year, while loans on Discover cards decreased by 1.5%. In comparison, purchase volume in other Capital One businesses, including the recently acquired fintech Brex, increased by approximately 14%.

Capital One executives explained that the slowdown in Discover loan growth was expected and likely temporary. Discover had already reduced the origination of new accounts before the acquisition, which affected short-term growth.

Challenges in integration

The integration process faces the complexity of assimilating Discover's network, with over 71 million cards, in addition to the debit function and the Pulse Network. It also involves the Diners Club card, which constitutes a global ecosystem in itself. Brian Riley, Director of Credit at Javelin Strategy & Research, commented:

"While some are questioning why it is taking so long, the conversion does seem to be progressing at a suitable pace."

Capital One is facing the largest card integration in the payments industry, marked by multiple challenges and the need to ensure Discover has broader global acceptance. The company remains committed to completing this deep structural change while minimizing disruptions for customers.