The merger between Capital One and Discover Financial Services has been approved by key regulators, moving the $35 billion deal closer to completion. The Federal Reserve and the Office of the Comptroller of the Currency have signed off on the acquisition, which was announced in February 2024. The Federal Reserve Board imposed a $100 million fine on Discover for overcharging certain interchange fees from 2007 through 2023. These practices have since been terminated, and affected customers will be repaid. Capital One has committed to complying with the Board’s actions as part of the approval conditions. With all regulatory approvals secured, Capital One expects to finalize the acquisition on May 18. This deal unites two major credit card companies, enhancing Discover’s payment network and potentially challenging the dominance of Visa and Mastercard.
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