RIVERWOODS, Ill. - Discover Financial Services LLC announced in a news release its launch of Discover Debit, the first new signature-debit program to be offered to financial institutions since the ruling in the Department of Justice anti-trust case in October 2004.
The ruling enables FIs that already issue credit and/or debit cards from the bankcard associations to issue additional cards from other brands.
The launch of the card also follows Discover Financial Services' acquisition of the Pulse ATM/debit network in January 2005, its strategic alliance with China Union Pay and multiple agreements with third-party credit and stored-value issuers announced in 2005.
"Discover Debit is the first new entrant into the signature-debit market in more than 10 years," said David W. Nelms, Discover Financial Services chairman and chief executive officer. "Discover's assets, experience and brand strength offer significant competitive advantages and a highly appealing alternative for financial institutions, merchants and consumers. The launch of Discover Debit builds on this with a new, uncomplicated approach to signature debit that provides convenience and broad acceptance to cardholders as well as security and competitive program features to financial institutions."
The Discover Network will support two forms of signature-debit-card programs: the Discover Debit Card for individuals and the Discover Debit Business Card.
Discover Debit cards will offer proactive fraud prevention tools and stringent network security features, as well as zero liability on Discover Debit cards for individuals. They can be used to withdraw cash at U.S. ATMs, and Discover Debit issuers have the option of participating in the Pulse ATM/debit network for PIN debit services.
Several key payment processors have agreed to support Discover Debit, including NetSpend Corp., Elan Financial Services, Central National Bank & Trust Company of Enid (Oklahoma) and Jack Henry & Associates.
