Discover Card

Today there are more than 50 million cardholders, and it is accepted at four million merchant and ATM locations. However, it is still not honored among all United States retail and service outlets. Although Discover Card Financial Services LLC has recently made inroads in China and Japan, it is also rarely accepted outside of the United States.

Security and Peace of Mind

One reason so many cardholders are drawn to Discover are its security features. Several third-party rating services have called it the best credit card for people concerned about internet fraud and identity protection. The Credit Card Monitor Report named Discover Card Best in Class in April 2006 and cited the Discover website for both its excellence and accessibility.

Some Protections Are Free

• $0 fraud liability guarantee
• Access to support 24/7
• Fraud Alerts - Each account is carefully monitored for unusual activity, and the customer is contacted at once to verify the changes.
• Secure online account numbers - The cardholder can obtain a new number for every web merchant they utilize. This protects their actual account number.

Additional Safeguards for a Price

• Credit report-monitoring program
• Wallet protection
• Payment protection plan

Credit reports from the three major credit bureaus are monitored every business day. Any unusual activity is reported to the Discover cardholder. The fees for this benefit range from $12.95 a month to $129.95 a year.

The Wallet Protection Plan offers the benefit of canceling your cards with one phone call, in case of loss or theft.

Customers can purchase relief from payments in times of both life crises, such as job loss, and celebrations, such as weddings. The price is $.89 per $100 balance on their monthly Discover Card statement. In return, late charges and overlimit fees are suspended. If the cardholder dies, the balance is paid in full up to $25,000.

Cashback Awards

The cashback awards program sounds great; receive cash back for every dollar you spend. However, its variations are more than a little confusing. By using a Discover Card for purchases, members might receive:

• Up to 1 percent
• 5 percent
• 5-20 percent

The percentage is dependent on which card they carry and which program applies.

Up to 1 Percent

The 1 percent reward is granted on any purchase that doesn’t fall under any of Discover Card’s special programs. The exact formula of how the percentage is determined is not published. Speculation at such forums as [http:// www.epinions.com/ Epinions] indicates that percentage applies after charging $3,500.

5 Percent

Under the "Get More" program, cardholders are rewarded with 5% of their purchase amount. The percentage is credited to their account if they take advantage of special deals among 15 categories of items purchased. Both the categories and featured retailers will vary throughout the year. Customers must read their promotional materials to determine what special offers might interest them and when they will be available.

5 to 20 percent

The 5 to 20 percent cashback awards are available year-round through the ShopDiscover Card program. If cardholders go through the ShopDiscover Card website to access online retailers, such as Target, Foot Locker, or Carnival Cruise Line, their purchase qualifies for cash back.

Although the company advertises that their cash awards never expire, a careful reading of their terms of service indicates otherwise. If the account is cancelled or inactive for more than 36 months, the company reserves the option of canceling any remaining awards.

Comparing Discover Cards

• Platinum Cards
• Gas Cards
• Miles Cards
• Student Cards

There are more similarities than differences among the four types of Discover credit cards. The primary variations are easy to understand by the card’s name.

Platinum Cards

All of Discover Card’s standard benefits are included with a Platinum Card:

• • No annual fee
  • Cashback bonuses
  • Fraud Alerts
  • $0 Fraud Liability
  • Zero percent interest for introductory period
  • No card or membership fee required
  • Maximum credit line of $50,000
  • Travel accidental death insurance of $500,000
  • Insurance coverage on auto rentals

Gas Cards

Gas Cards awards average 5 percent for fuel and auto maintenance expenditures. Up to 1 percent cash is offered on other purchases made with this card.

Miles Cards

Purchases made with a Miles Card are rewarded with ‘miles’ instead of cash. The simple formula of one mile for every dollar charged during the first year is easy to understand. A current bonus program offers a reward of 1,000 miles each month that the card is used. By using the card once a month, members can obtain 12,000 additional miles. The mile rewards are redeemable for airline tickets, cruises, dining, hotel stays, and car rentals.

Student Cards

Student Cards are designed for those who have limited experience and resources, there are two primary differences from the Platinum card. The introductory zero percent APR is offered for six months instead of twelve.

Discover Card’s Strength and Success

Expansion worldwide will undoubtedly increase more quickly now that Discover Card Financial Services LLC has won several major lawsuits against Visa and MasterCard for restraint of trade. It has proved to be a viable product and a survivor in the bankcard industry.

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