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.
Where Can You Use the Discover Credit 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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1. Discover is Accepted Nationwide By 99 Percent of the Places That Take Credit Cards
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.