Discover Financial Services DFS

Discover Financial Services (DFS), incorporated on July 25, 1960, is a direct banking and payment services company. The Company is a bank holding company, as well as a financial holding company. The Company operates through two segments: Direct Banking and Payment Services. It provides direct banking products and services, and payment services through its subsidiaries. It offers its customers credit card loans, private student loans, personal loans, home equity loans and deposit products.

Direct Banking

The Company's Direct Banking segment includes consumer banking and lending products, specifically Discover-branded credit cards issued to individuals and small businesses on the Discover Network and other consumer banking products and services. The Company's direct banking offers credit cards, student loans, personal loans, home equity loans, and other consumer lending and deposit products. Credit card customers are permitted to revolve their balances and repay their obligations over a period of time and at an interest rate set forth in their card member agreements, which may be either fixed or variable. Its credit card customers' transactions in the United States are processed over the Discover Network. Its cards also offer the Cashback Bonus rewards program.

The Company's private student loans are available to students attending eligible non-profit undergraduate and graduate schools. It also offers certain post-graduate loans, including bar study and residency loans. The Company offers fixed and variable rate private student loans originated by Discover Bank. The Company's personal loans are unsecured loans with fixed interest rates, terms and payments. These loans are primarily intended to help customers consolidate existing debt, although they can be used for other reasons. Home equity loans are offered to help consumers improve their homes, as well as payoff higher interest debt. The Company's deposit products include certificates of deposit, money market accounts, online savings and checking accounts and individual retirement arrangement (IRA) certificates of deposit.

Payment Services

The Payment Services segment includes PULSE, Diners Club and the Company's Network Partners business. Its Network Partners business provides payment transaction processing and settlement services. The Company's PULSE network operates an electronic funds transfer network, providing financial institutions issuing debit cards on the PULSE network with access to automated teller machines (ATMs) domestically and internationally, as well as point-of-sale (POS) terminals at retail locations across the United States for debit card transactions. The financial institutions, networks and commercial service providers are considered as network partners. As of December 31, 2016, the Company's Diners Club business maintained an acceptance network in 185 countries and territories through its relationships with over 90 licensees, which were financial institutions.

The Company competes with American Express, Bank of America, JPMorgan Chase, Citi, Wells Fargo, PNC, U.S. Bank, Visa, MasterCard, American Express, First Data, USAA, Ally Bank, Capital One (360), Sallie Mae and Barclays.