The pending merger between Capital One and Discover Financial Services received approval from multiple regulators on Friday, bringing the $35 billion partnership close to closing.
The Federal Reserve and the Secretary of Money were signed to the transaction, which was first announced in February 2024.
The Federal Reserve said it signed a consent order with discovery and evaluated the $100 million fine in order to overcharge certain interchange fees from 2007 to 2023.
According to the Federal Reserve, Discover has terminated these practices and is repaying these fees to affected customers. The board’s lawsuits are being carried out in conjunction with federal deposit insurance companies.
Capital One said it has pledged to follow the board’s actions on the River Woods, Illinois discovery, including repair requirements, as a condition of approval.
The OCC said the approval reflects “a careful analysis of the impact of mergers on the community, the banking industry and the US financial system.”
MacLean, Virginia-based Capital One said it plans to close the acquisition on May 18th after receiving all necessary regulatory approvals. Shareholders of both companies approved the transaction February.
The agreement has joined two of the largest non-bank credit card companies, such as JPMorgan Chase and Citigroup, with the exception of American Express, including JPMorgan Chase and Citigroup. It also connects two companies with almost similar customers.
It also provides Discove’s payment network with major credit card partners in a way that allows the payment network to become a major competitor again.
The US credit card industry is dominated by Visa-Mastercard Duopoly, with Amex finding its farthest third and even further farthest fourth.
