Discover to Broaden International Acceptance Through Alliance with JCB

Discover
to Broaden International Acceptance Through Alliance with JCB
Discover Financial Services announced today an alliance with
Japan’s largest credit card issuer, JCB, that would allow both
companies to accept cards within each other’s payment networks.
Starting in 2007, Discover will begin allowing JCB cardholders
to use those cards at Discover Network merchant locations in
the United States. In turn, beginning in 2008, Discover credit
card customers will be able to use their cards in Japan for
purchases at JCB merchant locations. By widening its acceptance
internationally, Discover takes a step to strengthen a weakness
that keeps some consumers from choosing its credit cards.

Currently,
Discover cards are accepted in Canada, Mexico, and the Caribbean.
Discover has also recently signed agreement that will enable
the acceptance of Discover credit cards in Central America and
China.

Today’s
announcement also highlights the potential benefits for JCB
in the alliance. According to the U.S. Department of Commerce,
more than 3.8 million Japanese travelers visited the U.S. in
2005, and spent more than $12.9 billion. Allowing more of those
travelers to use their JCB cards should be a boost for the company.