If you think about credit cards, there's a good chance that the first few names that come to mind are the big three issuers: Visa, Mastercard, and American Express. Testing for the card began in —the very first purchase was made by a Sears employee from Chicago in a Sears store in Atlanta—and there was also test marketing in Atlanta and San Diego. The credit card market was roaring at the time, with cards coming out at head-spinning speed, but Discover sought to distinguish itself in a couple of ways. It charged no annual fee, which was somewhat of a rarity at the time at least, for general-purpose credit cards. Although the cashback feature was attractive to consumers, Discover caught on slowly with merchants; at first, only major airlines and rental-car companies—and of course, big retailers like Sears—accepted it. But it gradually increased in popularity. Agreements with foreign payment networks in the mid s, like Japan's JCB and China's UnionPay, greatly increased its usage abroad in fact, it is the most widely accepted card in China. Unlike Visas and MasterCards, which are issued through banks, Discover is its own issuer and network similar to American Express. Staying true to its roots, the card still has no annual fee, and also does not charge its customers a foreign transaction fee. Features vary, depending on the card.
Myth: If I don’t see my card’s logo displayed, that means that the merchant doesn’t accept my card.
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Secure Account Log In. Buy online groceries. Pick out a birthday gift for mom. Head to a catch-up dinner with friends. Get gas. Consider these five facts about Discover credit cards:. How do you know whether Discover is accepted? The best thing to do is to ask. While some stores may have payment accepted decals at the register, others may not. Note: Interest rates on cash advances tend to be higher than those on purchases through the card.
Where Can You Use the Discover Credit Card?
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Credit cards are a convenient alternative to carrying cash — as long as merchants accept them. And that can depend on which of the four main U. Visa and Mastercard are accepted by virtually every merchant that takes credit cards, both in the U. Discover and American Express, however, are working to catch up. Here's how those two networks compare, at home and abroad. Domestically, there's now almost no difference in merchant acceptance between American Express and Visa or Mastercard.
Discover credit cards come with a lot of desirable features that attract new users, such as no annual fees, cash back rewards , and low introductory interest rates. However, once the new cards arrive in the mail, many consumers become disappointed when they find out that Discover Card acceptance isn't as widespread as rivals MasterCard and Visa. Here at MyBankTracker, we did some investigating to understand why your Discover card isn't accepted everywhere. Like American Express , in most cases, Discover issues its line of credit directly to consumers, while Visa and MasterCard are issued through banks and other entities that promote the cards and manage the billing. These partnerships help to spread the costs associated with logistics and promotion. According to a spokesperson for Discover, more than 30 Discover cards are co-branded with other partners. It may come as no surprise that the reason many merchants opt-out of accepting Discover cards and American Express, for that matter is about the bottom line.