Discover Steps Into the Debit Card Ring
Discover
Steps Into the Debit Card Ring
Discover Financial Services today announced its Discover Debit
offering, which will compete with debit MasterCard and Visa
products being offered by individual financial institutions.
Discover will offer banks the opportunity to issue both consumer
and business debit cards.
Discover
Debit is the first debit program to be offered to financial
institutions since the recent Department of Justice anti-trust
case that enabled financial institutions already issuing credit
or debit cards from Visa and/or MasterCard to issue additional
cards from other brands.
While
Discover's entrance into the market may be a good thing for
banks -- Discover is promising lower costs than those of MasterCard
or Visa -- from a consumer perspective, there is little likelihood
of change, other than the potential to have the Discover logo
show up on your next new debit card.
Debit
card use has been increasing versus the use of credit cards.
Last week MasterCard reported that dollar volume for its debit
programs rose 23.6 percent in 2005.
Published 02/13/06 (Modified 05/07/12)
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