Credit Debt LoansCredit CardsWhy Is Discover Card A Joke? (2024)

Why Is Discover Card A Joke? (2024)

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Is Discover card a joke?

The short answer is no, the Discover card is not an outright joke or a useless credit card. However, here’s why there are legitimate reasons it is viewed as subpar by many – the Discover card lags behind leading networks like Visa and Mastercard when it comes to acceptance, especially internationally. But keep reading, as the Discover card does have merits if used strategically.

In this article, you’ll learn why the limited acceptance of the Discover card is its Achilles’ heel. We’ll examine viewpoints on both sides – why some dismiss it as a joke versus why it can still be valuable for certain users. By the end, you’ll know whether the Discover card makes sense for your needs or not.

mind map detailing the pros and cons of Discover cards

Why don’t people like Discovery card?

The Discover credit card was introduced in 1985 as a direct-to-consumer credit card. It is currently one of the largest credit card issuers in the United States, with over 50 million cardholders. Despite its popularity, Discover financial service have received criticism for several reasons.

It’s worth noting that while the Discover Credit Card does have some drawbacks, people still ask “is discover a good credit card?” Some people may find that its unique rewards programs, such as cashback on rotating categories, are worth the limited acceptance and high APR.

Additionally, some customers with lower credit scores may appreciate the lower credit limits offered by Discover Card as a way to manage their finances. Ultimately, the decision to use Discover Card or not depends on individual needs and preferences.

Is Discover Card A Joke?

Why Is Discover Card a Joke
Why Is Discover Card a Joke?

It’s true that Discover Card now offers competitive interest rates, rewards programs and more than its competitors; however, many customers experience long wait times, poor customer service and a lack of transparency when dealing with their accounts.

This has resulted in an overall negative view of Discover among financial experts who often regard them as “just another card company” or worse – comical.

The good news is that there are steps Discover Card can take to fix these issues. By addressing customer complaints quickly, being transparent about fees and rewards programs, and providing excellent customer service they can regain the trust of their customers as well as gain respect from the financial industry.

If successful, Discover could become one of the leading credit card companies once again.

Reasons Why Discover Card is a JokeExplanationCounter Point
Limited acceptanceDiscover Card is not accepted as widely as other major credit cards such as Visa, Mastercard, and American Express.Some argue that Discover Card has been working to expand its acceptance and that it is accepted at most major retailers.
Low credit limitsDiscover Card is known for offering lower credit limits compared to other credit cards.Discover Card may offer lower credit limits to customers with lower credit scores to manage risk.
High APRDiscover Card has a higher APR (annual percentage rate) compared to other credit cards.Discover Card may offer higher APR to customers with lower credit scores to manage risk. Some argue that Discover Card’s rewards and cashback programs can offset the high APR.
Poor customer serviceMany Discover Cardholders have reported long wait times on customer service calls and difficulty resolving issues.Discover Card has been working to improve its customer service, including shortening wait times and providing more online resources.
Lack of rewards and benefitsDiscover Card is known for offering fewer rewards and benefits compared to other credit cards.Discover Card offers unique rewards programs, such as cashback on rotating categories and rewards for good grades for students.

Overview Of The Discover Credit Card – Is Discover A Good Card?

Market sShare of Credit Card Companies Pie Chart

Discover Card is one of the leading credit cards in the U.S., offering a range of advantages and financial flexibility to consumers. But what exactly does Discover have to offer, and how does it compare with its competitors? Let’s take a look at an overview of Discover Card and evaluate its pros and cons.

Discover Card offers some compelling benefits for customers. It provides cash back rewards on purchases, plus additional discounts when you shop through their website or mobile app.

There are no annual fees or foreign transaction fees, so it can be a great choice if you plan on traveling abroad frequently or make frequent online purchases.

Furthermore, they also provide access to your FICO score every month which can be helpful in monitoring your credit health over time.

On the other hand, there are some drawbacks associated with using the Discover Credit Card as well.

The interest rates are still higher than most other major cards and there may be certain restrictions that limit where you can use the card. Some stores still don’t accept it, espefcially internationaly. Additionally, customer service has been known to be less than stellar compared to other providers – something we’ll explore further in the next section.

Why Is Discover Card a Joke
Why Is DiscoverCard a Joke?

Poor Customer Service Experiences

One of the primary reasons why Discover Card is a joke is due to their poor customer service experiences. From numerous reports, customers have consistently complained about Discover Card’s horrible customer service. Among the grievances include:

  1. Long wait times when trying to contact customer service representatives
  2. Unclear instructions provided by customer service agents
  3. Insufficient solutions offered by customer service teams

These issues are compounded with complaints from cardholders who experienced unexpected fees and charges on their credit cards despite adhering to payment terms and conditions set out in their contracts.

In addition, many people do not receive timely recognition for their rewards points or cash back bonuses that they previously earned through regular spending on their cards. This lack of responsiveness has caused widespread dissatisfaction among users of this credit card company, further perpetuating its reputation as a joke amongst consumers.

Lack Of Card Benefits Compared To Other Credit Cards

It has become apparent that Discover Card isn’t the best choice for a credit card. Despite its honorable attempt to stand out in the market, it falls short when compared to other cards in terms of benefits and features. Cashback rewards are extremely low or nonexistent while interest rates can be quite high; this makes it difficult to reap any tangible benefits from owning one.

The available credit limit may also be lower than what is offered by competing brands, limiting customers’ spending power and making them feel as if they aren’t valued at all. Furthermore, there is no comprehensive rewards program and card security measures have been found lacking in comparison with those provided by some competitors.

The combination of these drawbacks create an unfavorable impression about Discover Card’s suitability for many people looking for a reliable credit provider – especially considering its high interest rates and fees which further add to the financial burden of having such a card.

High Interest Rates And Fees

Discover Card has some of the highest interest rates and fees amongst credit cards in the market. Its APR can be as high as 24.49%, and its penalty fees are also quite steep compared to other card providers. For instance, Discover charges up to $39 for late payments or returned checks, whereas many competitors charge only $35 or less.

Furthermore, credit card balance transfers generally come with a 3% fee when done through Discover while most others offer 0%.

How To Transfer a Credit Card Balance

All these make it difficult for consumers to find savings when using this particular brand of credit card.

Additionally, Discover is not widely accepted worldwide due to limited partnerships with merchants outside the US.

This further limits customers’ ability to use their cards abroad and could potentially cause them extra costs if they have no choice but to use an alternative form of payment overseas.

What Do People Say About Discover Card

Limited Acceptance Worldwide

Is Discover card accepted internationally? Is Discover Card Accepted In Europe?

You can’t judge a book by its cover,” is an adage that rings true for the Discover Card. On paper, it may look like any other credit card; however, when it comes to acceptance worldwide, users are often left disappointed. The following table illustrates this phenomenon:

CountryNumber of Merchants Accepting Discover Card
U.S & Canada10 Million+
Europe1 Million+
Asia500 Thousand+
South America100 Thousand+

From this data, we see that while there are many merchants in North America who accept the Discover credit card, usage of such cards abroad is significantly lower than expected. This lack of international acceptance limits the customer base and hinders potential growth opportunities for businesses using the Discover Card.

To make matters worse, some countries completely ban or restrict the usage of foreign credit cards – making purchases with the Discover Card virtually impossible. Thus, limited acceptance overseas has become a major issue faced by those wanting to use their Discover Cards abroad.

Unsatisfactory Card Security

Discover Card has been long criticized for its unsatisfactory card security. Cardholders have reported numerous issues with insecure card data and inadequate security measures over the past few years, leading to a loss of faith in Discover’s ability to protect their personal information:

  • Poor encryption on online transactions
  • Inadequate fraud monitoring systems
  • Unreliable customer support when it comes to disputes about fraudulent activity
  • Lackluster account notifications for suspicious activity
  • Limited options for dispute resolution if something goes wrong.

These issues have not only caused financial hardship for many Discover customers but also exposed them to the risk of identity theft or other types of malicious attack. As such, this raises serious questions about Discover’s commitment to providing secure services and protecting its customers’ financial information.

It is clear that more needs to be done by the company in order to ensure safe use of its payment cards.

Late Payment Penalties

It is a common belief that Discover Card imposes hefty late payment penalties on its customers. However, an analysis of the company’s policies reveals this to be only partially true.

The truth is that Discover does assess late fees for payments made after the due date, but these fees are not as high as other major credit card companies.

In fact, with Discover Card, late payment charges range from $10-40 depending on how much you owe and when it was paid. Additionally, if your account remains delinquent for more than 60 days, there may also be interest accrued at the rate of up to 28%.

It is important to note that in order to avoid any additional costs associated with late payments, customers must make their payments before 8 PM EST or they will incur a fee. This makes it essential for consumers to keep track of their due dates and ensure timely payments each month.

Despite offering some leniency on late payment fees, Discover IT Card falls short when it comes to rewarding its customers with low reward points earned per dollar spent.

Discover Card Timeline History

Low Reward Points Earned

Overall, the Discover Card has a weak rewards program when compared to other major credit cards.

Cashback is limited and customers have complained that they are not getting enough reward points for their purchases. The card offers bonus points in certain categories such as gas stations or restaurants but these bonuses only provide minimal additional cash back benefits.

Furthermore, if customers do not use their card regularly then they will not receive any benefit from the reward points system at all. In addition, even though many users like the idea of having no annual fees on the Discover Card, this does limit the number of available rewards for them.

The poor cashback rewards program offered by Discover Card makes it an unattractive option for those looking to maximize their spending power with a credit card. Customers who want more value out of their purchases should consider other options that offer better cashback returns and generous bonus point incentives.

When comparing different cards side-by-side it quickly becomes evident which one provides the best overall package of features and rewards. All things considered, discovering what type of card works best for your needs can help you make sure you get maximum value out of every purchase.

Poor Cash Back Rewards Program

Discover card’s cash back rewards program is substandard when compared to other credit cards. Their rewards structure doesn’t offer enough incentive, as the amount of cashback benefits are minimal. Moreover, their rewards comparison stands in stark contrast to most others on the market: Discover card offers far fewer incentives and rewards than rival cards, making it difficult for customers to justify its use.

Consequently, this lack of generous cashback reward amounts have made discover card a joke among those looking for quality incentives.

As such, customers may benefit from considering alternative options that offer better rewards programs.

Who Owns Discover Card

Discover Card is a widely recognized credit card brand that is owned by Discover Financial Services, a financial company headquartered in Riverwoods, Illinois. It was established in 1985 as a subsidiary of Sears, Roebuck and Co., but was later spun off as an independent company in 2007.

Since then, Discover Financial Services has become the sole owner and operator of Discover Card, offering a range of credit card products and services to consumers across the United States.

Is Discover Card Worth It?

Like any credit card, Discover card has its pros and cons.

Cashback rewardsDiscover card offers cashback rewards on purchases, which can be a benefit for people who use their credit card frequently.
0% Introductory APRDiscover card offers a 0% introductory APR on purchases and balance transfers, which can be a great option for people who want to consolidate their debt.
Free FICO credit scoreDiscover card offers free access to their FICO credit score, which can be helpful for people who want to monitor their credit.
Limited acceptanceDiscover card’s limited acceptance can be a major disadvantage for some people, as they may not be able to use their card in certain places.However, Discover card’s acceptance has been increasing over time and is now accepted at most major retailers.
Low credit limitThe low credit limit can also be a hindrance for people who need a higher limit.However, Discover card offers credit limit increases for eligible cardholders.
High APRThe high APR can also be a dealbreaker for some people.However, Discover card offers lower APRs for cardholders with good credit scores.
Poor customer serviceDiscover card’s poor customer service can make it difficult for cardholders to resolve issues.However, Discover card has been improving its customer service in recent years and offers various customer support channels.

Alternatives To Discover Card

Discover Card may be a joke, but there are plenty of other credit cards on the market that do not suffer from its low cash back rewards program. For those looking to find an alternative, here is a former financial planners guide to the best reward credit cards with no annual fee out there.

Credit CardDescription
Chase Sapphire ReserveHigh-end credit card offering travel perks, cashback, and points. Known for excellent customer service and fraud protection.
Capital One VentureTravel rewards credit card offering miles for every purchase. Also offers travel insurance and 24/7 concierge service.
Citi Double CashCashback credit card offering cashback rewards on purchases. Also offers a 0% introductory APR on balance transfers.
Bank of America Cash RewardsCashback credit card offering cashback rewards on purchases. Also offers a variety of benefits, including travel insurance and fraud protection.
Wells Fargo PropelTravel rewards credit card offering points on purchases. Also offers a variety of benefits, including travel insurance and cell phone protection.
  1. For starters, compare different credit cards by how much they offer in terms of both rewards and sign-up bonuses. Some of the most popular deals include
    • Chase Sapphire Preferred which offers two points per dollar spent on travel and dining purchases and one point per dollar spent elsewhere;
    • American Express Blue Cash Everyday which gives three percent back at U.S supermarkets (on up to $6,000 per year);
    • Capital One Quicksilver Rewards card which provides unlimited 1.5% cash back on all purchases;
    • and Citi Double Cash which grants you 2% cash back – 1% when you make your purchase plus another 1% when it’s paid off!
Credit CardAnnual FeeAPR RangeReward RatesAcceptance Rates Internationally
Discover it® Secured Credit Card$022.99% variableEarn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases.Limited
Discover it® Cash Back$011.99% – 22.99% variableEarn 5% cash back on rotating categories each quarter (up to $1,500 in purchases per quarter, activation required). Plus, earn unlimited 1% cash back on all other purchases.Limited
Discover it® Chrome$011.99% – 22.99% variableEarn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases.Limited
Discover it® Miles$011.99% – 22.99% variableEarn 1.5 miles per dollar spent on all purchases. Miles can be redeemed for travel statement credits.Limited
Chase Freedom Flex℠$014.99% – 23.74% variableEarn 5% cash back on rotating categories each quarter (up to $1,500 in purchases per quarter, activation required). Plus, earn unlimited 1% cash back on all other purchases.Limited
Chase Sapphire Preferred® Card$9515.99% – 22.99% variableEarn 2 points per dollar spent on travel and dining at restaurants. Points can be redeemed for travel through Chase Ultimate Rewards®.Limited
Winter 2023

All these options boast generous sign-up bonuses as well as higher rewards than Discover Card ever could provide. Furthermore, many have introductory periods where APR rates are waived for a certain time period – so even if you don’t intend to pay off your balance each month (which is highly recommended!), this can still save you money in interest charges compared to what Discover would charge.

Ultimately, if you’re serious about getting more bang for your buck when using plastic then these alternatives will help you reap greater rewards without having to resort to such a ‘joke’.

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In conclusion, Discover Card is a joke to many consumers due to its lack of features and benefits compared to other credit cards. Its customer service experiences are subpar, it has high interest rates and fees, limited acceptance worldwide, late payment penalties, low reward points earned, and a poor cash back rewards program.

It’s like trying to open a can with a spoon; you’ll never get the job done efficiently or effectively.

For those looking for an alternative option to Discover Card, there are plenty available that offer more competitive terms and better customer service experiences. Consumers should research different companies before making their decision in order to find the best fit for them.

I would personally recommend researching Chase Credit Cards as they have some excellent options with great rewards programs and low interest rates.

Overall, Discovercard is not worth your time nor money if you’re looking for quality credit card services. The company does not provide enough incentives or benefits when compared to other providers which make it harder for customers to justify using it over another card.

With all this said, I strongly advise avoiding Discover Card altogether unless absolutely necessary – but only then after doing extensive research into what else is out there!

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Note: The content provided in this article is for informational purposes only and should not be considered as financial or legal advice. Consult with a professional advisor or accountant for personalized guidance.

Michael Ryan
Michael Ryan
Who Am I? I'm Michael Ryan, a retired financial planner turned personal financial coach. And author and found of blog. My advice is backed by decades of hands-on experience in finance and recognition in esteemed publications like US News & World Report, Business Insider, and Yahoo Finance. 'here'. Find answers to your financial questions, from budgeting to investing and retirement planning, on my blog My mission is to democratize financial literacy for all.