Discover Financial Services has launched a newly repositioned credit card, leveraging both new elements and long-established Discover card features.
“We believe that consumers want something different from a credit card company – something that addresses their specific needs, treats them fairly and gives them what they deserve,” said Roger Hochschild, president and chief operating officer at Discover. “This card is a natural extension of Discover’s ‘It Pays to Discover’ brand positioning and truly shows how Discover is looking to build a long-term relationship with its customers.”
Some key positioning elements as noted by Discover include:
- Fair: No annual fee. No overlimit fee. No pay-by-phone fee. No foreign transaction fee. And no fee for your first late payment. Plus Discover won’t raise a cardmember’s APR for paying late.
- Safe: Discover ranks among the industry’s highest in identity fraud resolution, according to the Javelin Strategy & Research Eighth Annual Card Issuer’s Safety Scorecard Report (June 2012). Plus, Discover’s $0 Fraud Liability Guarantee means cardmembers are never responsible for unauthorized charges on their account.
- Generous: Cardmembers can earn 5% Cashback Bonus in relevant categories that change throughout the year, up to a quarterly maximum, when they sign up for each 5% program. Cardmembers automatically earn 1% Cashback Bonus on all other purchases, not points. Cardmembers also earn 5-20% Cashback Bonus through the company’s online shopping portal, ShopDiscover, and can use the new Cashback Concierge, a free service that guides customers through a one-on-one online tour that helps them get the most from their rewards based on how they use their cards.
The most visible differentiation may well be its design, which features a brushed steel appearance, as well as the cardholder’s name and account number located on the back of the card. Early media advertising prominently features cardholder servicing via U.S. customer service reps. Card fulfillment is via expedited delivery and uses a box rather than a delivery envelope.
Pricing for new cardholders is as follows:
APR for purchases and balance transfers: 10.99% – 19.99% variable based on availability and creditworthiness. Cash APR: 24.99% variable. Min. int. charge: $0.50. Cash fee: 5%, min. $10. Balance transfer fee: 3%. Rates as of 12/31/12.
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