Discover's profit masks weak U.S. card business

Discover's profit masks weak U.S. card business
Tags: Bank / Credit Union, Bank Automation, Central and Eastern Europe, Debit / Credit, North America, Transaction Processing, Trends / Statistics
June 26, 2008

ChicagoBusiness.com: Discover's profit in the most recent quarter rose 12 percent, following record volumes in its third-party payments business, where ATM and debit transactions are processed. The company also benefited from the sale of its British card business. But while Discover saw modest increases in sales on its own cards and within its portfolio of managed loans, its U.S. card segment's profit dropped 20 percent, namely because of card defaults.