Why Accept Discover Cards? Rates, Card Brands and Freebies!

discover_logoDiscover card acceptance was an expensive option when setting up a merchant account at one time.  Discover wasn’t widely accepted and the locations that specifically wanted it, had to go directly to Discover to have the ability to process added to their credit card machine.  It was also widely known that their processing rate was much higher than accepting visa and mastercard.  Also the cards were processed separately and the customer would receive a separate bill from Discover.  Because of this, many merchants were happy to pass on accepting Discover since the few customers that carried Discover were also likely to have a Visa or Mastercard.

Although Discover has made drastic changes to their business model, these perceptions still persist today.  The fact is that Discover acceptance goes right along with Visa and Mastercard.  My new merchant services customers automatically get set up to accept those cards along with Visa and Mastercard.  There is no extra paperwork necessary and the fees are the equivalent to Visa and Mastercard fees.    Billing and the processing is also integrated with the other card brands all on the same easy to read statement.  Not only is there no reason to NOT have the capability to accept Discover cards, there are many reasons to PROMOTE your customers to use their cards.

1)     Discover Cardmembers have higher average tickets than Visa and Mastercard
2)     Discover has America’s #1 ranked cash rewards program
3)     78% of consumers with a rewards card use it as their primary card
4)     Cardholders of rewards cards spend nearly 4 times as much monthly
5)     Customer satisfaction by accepting rewards cards of choice will help a merchant stay competitive
6)     Over half of Discover card users won’t return to a location that rejects their card
7)     By accepting Discover you are also accepting card brands used by international travelers

One of the many advantages to accepting the Discover card is the global usage with their extended card network.  There are over thirty issuers of Discover cards including the GE, Walmart and Sam’s Club, making Discover the sixth largest issuer of credit cards in the U.S.  Also by accepting Discover merchants also are automatically set to accept other cards that are part of their network.  These include:

1)     Diner’s Club International, which account for an annual volume of $27 billion

2)     JCB, Japan’s card accounts for over 3 million visitors a year spending over $14 billion

3)     Union Pay, the only card network in mainland China with about 2.5 billion card holders

4)     BC Card, the largest South Korean network with 31% market share

5)     DinaCard, a growing Serbian card network

I’ve also noticed what an incredible job that Discover has done over the past several years to build relationships with their card members, with those in the payment card industry and with the merchants.  Of course it’s widely known that Discover leads in customer satisfaction and it’s widely advertised about their 1% to 5% cash back as well as their late payment forgiveness.  What the average consumer won’t see is their commitment to the payment card industry and their participation in the Electronic Transaction Association as well as their major sponsorship of regional events, such as the Midwest Acquirers Association, South East Acquirers Association, North East Acquirers Association and the Western States Acquirers Association.  The company’s generosity at these events is only outdone by their incredible representatives.

Beyond the advantages I’ve listed above, the Discover Network also goes out of its way to provide even more value for businesses.  One of the perks I most appreciate about them is their complimentary promotional material, including signage for all card brands as well as check presenters and other free items.  Visit this site and sign up to receive your free Discover items .

With these recent major changes to the Discover Network and their dedication to serve the payment card industry, the card holders and their merchants that accept the cards, it’s no wonder that they continue to expand and experience great profits as well.

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Comments

  1. Robert, that was very informative. I had no idea of the differences. This is definitely something to keep in mind, especially for small businesses I work with. Thanks.

  2. Great post! Thanks for sharing this! Very informative. I’m sure this is very helpful for other people too who are into Payment processing programs.

Trackbacks

  1. […] presenters, credit card signage, tote bags, pens and more?  In a previous article touting the benefits of accepting Discover,  I gave a link to Discover’s site that offers free branded merchandise for assisting […]

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