Profile: Discover Financial Services (DFS.N)
28 Aug 2015
Discover Financial Services (DFS), incorporated on 25, July 1960, is a direct banking and payment services company. The Company is a bank holding company, as well as a financial holding company. It provides direct banking products and services and payment services through its subsidiaries. It offers its customers credit card loans, private student loans, personal loans, home loans, home equity loans and deposit products. The Company manages its business activities in two segments: Direct Banking and Payment Services. Direct Banking segment includes consumer banking and lending products, specifically Discover-branded credit cards issued to individuals and small businesses on the Discover Network and other consumer banking products and services, including private student loans, personal loans, home loans, home equity loans, prepaid cards and other consumer lending and deposit products. The Payment Services segment includes PULSE, Diners Club and the Company’s Network Partners business, which provides payment transaction processing and settlement services on the Discover Network. This segment also includes the business operations of Diners Club Italy, which primarily consist of issuing Diners Club charge cards.
The Company’s direct banking offers credit cards, student loans, personal loans, home loans, home equity loans and deposit products. Credit card customers are permitted to revolve their balances and repay their obligations over a period of time and at an interest rate set forth in their card member agreements, which may be either fixed or variable. Its credit card customers' transactions in the United States are processed over the Discover Network. Its cards also offer the Cashback Bonus rewards program. The Company’s private student loans are available to students attending eligible non-profit four-year undergraduate and graduate schools. It also offers certain post-graduate loans, including bar study and residency loans. The Company’s personal loans are unsecured loans with fixed interest rates, terms and payments. These loans are primarily intended to help customers consolidate existing debt, although they can be used for other reasons. The Company offers home mortgage loans and related services to help consumers finance home purchases and refinance existing home mortgages. Home equity loans are offered to help consumers improve their homes as well as payoff higher interest debt. The Company’s deposit products include certificates of deposit, money market accounts, savings accounts, checking accounts and Individual Retirement Account (IRA) certificates of deposit.
The Company operates the Discover Network, the PULSE network (PULSE) and Diners Club International (Diners Club). The Discover Network processes transactions for Discover-branded credit cards and provides payment transaction processing and settlement services. PULSE operates an electronic funds transfer network, providing financial institutions issuing debit cards on the PULSE network with access to ATMs, as well as point-of-sale (POS) terminals at retail locations throughout the United States for debit card transactions. PULSE provides cash access at approximately 1.6 million ATMs around 130 countries. Diners Club is a payments network of licensees, which are generally financial institutions, that issue Diners Club branded charge cards and/or provide card acceptance services. Its Diners Club business maintains a network in over 185 countries and territories with over 80 licensees. The financial institutions, networks and commercial service providers are considered as network partners.
The Company competes with Visa, MasterCard, American Express and First Data, Bank of America, JPMorgan Chase, Citi, Sallie Mae, Wells Fargo, U.S. Bank, PNC, USAA, Ally Bank, Capital One (360) and Barclays.
Discover Financial Services
2500 Lake Cook Rd
RIVERWOODS IL 60015-3851