No More Balance Transfers Between Capital One and Discover Cards: Here’s What to Do Instead | Credit Cards
Key Takeaways
- Since Capital One completed its acquisition of Discover, it has been gradually merging the various divisions of the companies.
- Because Discover and Capital One cards are under the same corporate umbrella, you can no longer do balance transfers between the two card types.
- If you have a Discover or Capital One card, there are other issuers to consider for a balance transfer.
If you are a Capital One or Discover cardholder, you may be wondering how Capital One’s acquisition of Discover might change card features and policies. When it comes to balance transfers, you are no longer able to initiate a transfer between the two.
“Capital One does not allow balance transfers between a Capital One card and another card issued by Capital One,” says a Capital One spokesperson. “Because Discover is now part of Capital One, customers can no longer transfer a credit card balance or use a balance transfer check between a Discover and Capital One card account.”
Learn more about why issuers do this and possible cards to consider instead.
Why Card Issuers Don’t Allow Balance Transfers From Within Their Network
It all comes down to “what’s in it for the card issuer?” says Ashley Akin, certified public accountant, tax consultant and senior contributor at TMGM.
“A balance transfer can be seen as a competitive opportunity for the bank,” she says.
When a consumer moves debt from another lender into their bank, it can create profitability through future spending, fees or interest rates applied after the promotional 0% annual percentage rate expires.
“This is why a balance transfer between Capital One and Discover doesn’t provide much benefit when both cards are being issued by the same bank,” says Akin.
While both card families will continue to operate under their different names for now, the same parent financial institution – Capital One – owns them both. “As far as the lender is concerned, there isn’t any new business coming in,” Akins says. “Rather, you are merely requesting them to move an existing balance from one account to another.”
Top Balance Transfer Card Offers Outside of Capital One and Discover
If you are carrying a balance as a Discover or Capital One cardholder, there are many competitive balance transfer credit card offers available from other issuers.
- Long 0% APR balance transfers: The Wells Fargo Reflect® Card has one of the longest introductory 0% APR periods at 21 months from account opening on qualifying balance transfers, but there is no rewards program or welcome offer. After the introductory period, there is an 17.49%, 23.99%, or 28.24% variable APR.
- Best for unlimited, flat-rate cash back: The Citi Double Cash® Card offers a generous 0% APR for 18 months on Balance Transfers. Cardholders also get ongoing value by earning 2% cash back: 1% cash back on purchases, and an additional 1% when you pay your balance. Regular APR is 17.49% to 27.49% (variable) after 18 months.
- Best cash bonus: In addition to the up-front value of the 15 months of 0% APR on balance transfers, new Chase Freedom Unlimited® cardholders can earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. An 18.24% to 27.74% variable APR applies after the introductory period.
- Best for bonus category cash back: The Blue Cash Everyday® Card from American Express offers tiered cash back earnings in popular categories including 3% cash back at U.S. supermarkets, online retail purchases and at U.S. gas stations, on up to $6,000 per year in each category (then 1%). Cardholders also get an intro APR of 0% on balance transfers for 15 months. After that, the APR is 19.49% to 28.49% variable.
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Other Things to Know About Capital One and Discover
Eventually, Discover cards will transition so that they are managed through the Capital One portal. If you have both types of cards, the good news is that you’ll be able to see all accounts in one place. For now, the company says, keep using your Discover and Capital One accounts as usual. Once any Discover accounts are set to move over to Capital One, cardholders will be notified in advance.
In the meantime, Discover cardholders will continue to earn rewards and enjoy benefits and terms, and conditions will stay the same unless you are otherwise notified. As for balance transfer offers and policies, they will remain as is except that you are no longer able to transfer a balance between Capital One and Discover cards.
