By Ben Glickman

Capital One is moving its debit cards over to the Discover network after acquiring the network earlier this year. Many customers feel like they are being downgraded from their previous MasterCards.

Complaints about the change have cropped up on social media, with users lamenting the switch based on perceptions that Discover might not be widely accepted. Most places in the U.S. now take Discover, but sporadic problems with the new cards are fueling concerns among customers more familiar with Visa and Mastercard.

Emily Burr, a 26-year-old Connecticut resident, said she couldn't use her new card in some local stores or to pay certain monthly subscriptions. She doesn't want the uncertainty of whether her card will be rejected and said she plans to switch banks.

"It's kind of a hassle," said Burr, who works in book publishing. "I wish I didn't have to."

Capital One said it is working to expand the Discover network and address customer concerns about acceptance when they arise. The transition is limited to debit cards for now, though Capital One has said it plans to move over a portion of credit cards in the future.

A big prize in Capital One's purchase of rival card issuer Discover was the company's card network, a smaller competitor to Visa and Mastercard. The networks partner with banks such as Chase and Citi that issue credit and debit cards and process payments people make at stores.

Capital One is betting on considerable savings from moving its cards over to its own network. But the company has acknowledged that maximizing that benefit will require investments in raising Discover's profile and reach, especially outside the U.S. where the network isn't as widely accepted.

Customer reactions online to the change show Discover's image might be as much of an issue as actual card acceptance.

In the U.S., more than 99% of merchants accept Discover cards, putting it nearly on par with cards that run on the Visa and Mastercard networks, according to Ted Rossman, a senior industry analyst at Bankrate. But the tiny slice of places that don't could present unexpected hassles for cardholders, especially for those who tend to frequent smaller shops.

Rossman added that there are lots of reasons cards can be denied that aren't related to network acceptance, such as fraud protection or required activation for a new card.

Before the migration, Capital One checked that the 100 merchants most used by its debit-card holders accepted Discover debit, and it worked to fill gaps in acceptance, according to a company spokeswoman. Capital One has seen activations for its new debit cards and spending in line with its expectations and complaints have been low, the spokeswoman said.

One frustration for customers: Discover's debit card network isn't accepted for all instant transfers, which are used in payments apps like Venmo. The company has posted workarounds on its website, such as linking checking accounts in lieu of a debit card. In certain cases where debit cards are rejected, customers may need to select an option at the point of sale to enter their PIN.

Darnell Lowe, a 38-year-old Philadelphia resident, was concerned about the change to his Capital One debit card after having a Discover credit card rejected in his past travels overseas.

Lowe, who is in school to become an aircraft mechanic, travels internationally regularly and has a trip planned to Albania for New Year's Eve. He said he was looking into getting another debit card before then.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

November 13, 2025 22:00 ET (03:00 GMT)

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