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  1. #1
    CreditCardGuru
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    Exclamation Discover acquires Diners Club from Citi

    The world’s oldest credit card, Diners Club, is joining forces with the world’s newest major credit card, Discover. Citigroup has sold Diners Club International to Discover Financial Services for a deal valued at $165 million. The Diners Club brand and payment network will be acquired. Discover will not be extending any credit to the cardholders. The revolving lines of credit on Diner Club cards will continue to be offered by the financial institutions which already issue them, including Citi. Discover will only be generating their revenue from the transaction fees themselves. The shakeup was made public on Monday, April 7th, 2008.

    Discover credit cards currently have the lowest market share among the major players (Visa, MasterCard, American Express) and the Diners Club acquisition will certainly help level the playing field. Discover wants wider acceptance outside the United. Diners Club, which is geared towards travelers and international customers, should help do just that. Citi states their reason for the sale is to make their operations more lean by disposing of nonessential parts of their business, such as Diners Club.

    Currently outside the United States, over $30 billion is put on Diner Club cards internationally. Their primary customers are corporate accounts and affluent individuals. Experts suspect the move is to help pit Discover card head to head with American Express over the next few years.

    Right now, more than $30 billion is spent each year with Diners Club cards outside North America by more than 80,000 commercial and business clients. The deal is expected to be completed within 3 months and the total merging of the two entities may take as long as 2 to 3 years.
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    Reply With Quote Reply With Quote     Apr 10, 08, 3:25 pm
  2. #2
    jewels
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    AWeSOME!! I just got a discover card so if they add extra benefits from Diners Club to make it better I'm all for it!
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    Reply With Quote Reply With Quote     Apr 18, 08, 12:48 pm
  3. #3
    Mogul of Pineapples
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    I think this was a real smart move for Discover and $165 mil isn't much to pay for a brand like Diners Club. I'm hoping they'll come out with a Discover Diners Club or something along those lines (an upscale Discover card) I think it would be a hot card if they marketed it like American Express.
    Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed. Regardless, anything I say is my honest opinion.

    Current Cards:     American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
    Primary Everyday Card: American Express Blue Cash
    Primary Travel Card: Citi Thank You Premier
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    Reply With Quote Reply With Quote     Jun 5, 08, 9:18 pm
  4. #4
    AnthonyBarone
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    When do you think this will be all wrapped up? I haven't seen anything on Discover's homepage when I login to my account on that thing.
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    Reply With Quote Reply With Quote     Jun 7, 08, 12:59 pm
  5. #5
    Multi-Purpose
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    diners club needed this because their whole brand and image is so old fashioned and out of date. yeah they were big back in the day but it's different times now. i'd like to see how discover ends up branding them to make them popular again.
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    Reply With Quote Reply With Quote     Jun 25, 08, 9:39 am
  6. #6
    JG7
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    Discover only purchased the Diners Club network so the cards will keep being issued by Diners Club.... Discover isn't expected to issue any Diners Club cards itself.... Citi and the other Diners Club licensees will keep issuing them...
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    Reply With Quote Reply With Quote     Jul 2, 08, 6:44 pm
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    aleo1203
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    Just as an update to this thread. Discover completed its acquisition of Diners Club back on July 1st and expects to receive more than thirty billion in annual spend volume from this deal.
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    Reply With Quote Reply With Quote     Jul 31, 08, 7:22 pm
  8. #8
    Mogul of Pineapples
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    Has there been any further news on the Discover/Diners Club merger? New cards utilizing features from both?
    Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed. Regardless, anything I say is my honest opinion.

    Current Cards:     American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
    Primary Everyday Card: American Express Blue Cash
    Primary Travel Card: Citi Thank You Premier
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    Reply With Quote Reply With Quote     Oct 18, 08, 2:47 pm
  9. #9
    fffresh
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    No, I have not heard news on any new cards from them.
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    Reply With Quote Reply With Quote     Oct 19, 08, 1:11 pm
  10. #10
    Floppster
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    I presume the Admins here knew about that which is why they put Discover and Diners in one forum
    Intellectuals solve problems. Geniuses prevent them.
    - Albert Einstein 1879-1955
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    Reply With Quote Reply With Quote     Oct 19, 08, 4:38 pm
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