Discover Card website earns top honors, as CFO considers issuing private label credit cards
July 2, 2012
By: Joe Taylor Jr.
Discover earned top marks for its customer service website in the latest round of Forrester's Credit Card Secure Website Rankings. The May 2012 edition of Forrester's annual online banking study scores Discover at 80 out of a possible 100 points, landing it ahead of the five other major credit card issuers. Forrester researchers studied the websites for six of America's largest credit card issuers during a three-day period in March, scoring participating lenders on more than 50 criteria.
Evaluators cited Discover's security features as "significantly above minimum standards," rating the company's website highly for its self-service systems, transactional content, and functionality. In a statement to reporters, Discover spokesman Mike Boush confirmed his company's commitment to "delivering an easy and helpful online experience." The Discover Card website previously earned the top evaluation in the 2011 Keynote Competitive Research Industry Study of U.S. credit card marketing websites.
Discover mulls entry into private label credit card market
Days after earning Forrester's accolades, Discover's CFO hinted to investors that the company may experiment with offering private label credit cards. According to Dow Jones reports, Mark Graf told attendees at a Deutsche Bank conference in New York that Discover would like to find a way to enter the business of offering retail store credit cards and other privately labeled accounts.
Graf told his audience that Discover had investigated HSBC's American credit card portfolio, eventually purchased by Capital One. HSBC had released a handful of private label credit cards using Discover's network, but without the online servicing, cash back rebates, or other features of Discover's company-issued accounts. Capital One recently notified cardholders of the new ownership, but did not disclose if affected accounts would switch away from Discover to the Visa or MasterCard networks the company uses for the rest of its cards.