There are several card networks and issuers on the market. Of course, Visa and Mastercard are certainly the big two, and the most well-known, but they’re not the only ones. We can also talk about Discover, a US-based card network and issuer that works as a payment processor.
Founded in 1985, Discover is known for rewards and flexibility. However, there is no one size fits all answer to anything financially-related. That’s why it’s important to carefully assess whether Discover payment processing is for you. Will it be for everyone? No, but Discover is certainly widely used.
According to a 2023 report, Discover Card is accepted by around 10.64 million US merchants and in more than 200 countries and regions. While Visa and Mastercard remain the kings of the card network world, Discover certainly isn’t far behind.
To help you make a solid decision, we’ve put together this review of Discover payment processing, giving you all the information you need.
Let’s learn more.
TL;DR Key Takeaways
- Discover is both a credit card issuer and a payment network, similar to American Express.
- It is accepted at approximately 10.64 million US merchants as of 2023.
- Internationally, Discover is accepted in over 200 countries and territories, though coverage is inconsistent and often limited outside the U.S.
- All Discover cards come with no annual fees.
- Discover’s own network (unlike Visa or Mastercard, which are third-party networks) gives it more control over transaction fees and fraud protection.
- Due to limited international acceptance, especially in Europe and smaller retailers, it’s often best to pair Discover with a Visa or Mastercard when traveling abroad.
Criteria Breakdown
To fully examine Discover payment processing, we needed a set of criteria to measure it against. We based our views on processing speed, fee structure, customer service quality, and dispute resolution effectiveness. These are all key insights every business needs to understand before choosing a card network, issuer, or payment processor.
We rated each of these areas from 1 to 5, with five being the highest possible rating. Here are the results:
- Processing Speed & Efficiency: 2/5 – These are several reports of 2-3 day delays, which lowered the score here.
- Acceptance & Coverage: 3/5 – Discover has 10.64 million US merchants, however, there is limited international reach, especially compared to Visa and Mastercard.
- Fee Structure: 3/5 – Offers competitive loans, but has unclear merchant fees.
- Customer Service Quality: 2/5 – In some cases, there are language barriers, and closure difficulties, which impedes customer service.
- Security & Fraud Protection: 3/5 – Discover offers standard fraud protection for peace of mind.
- Integration Capabilities: 3/5 – Integration offers standard options, but limited advanced features.
- Reliability & Stability: 2/5 – There have been reports of sudden account closures.
- Dispute Resolution: 1/5 – The score is low here due to poor handling of valid fraud claims.
Discover Payment Processing Overview
What Discover Payment Processing is Best Known For
In the payment networks world, there are four main big-hitters. These are the aforementioned Visa and Mastercard, alongside American Express (also known as AmEx) and Discover. However, Discover stands out because it doesn’t only operate as a card network, it’s also a card issuer and a payment processor. This offers unique features for customers, adding flexibility to their choice.
Discover is known for its cashback rewards programs, along with fee-free products. This obviously makes it attractive to those who are looking to reduce credit card processing fees. The card network is also heavily present amongst US merchants, but it does have limited reach outside of the country, making it a less effective choice when traveling.
A common question is: How long does Discover take to process payment? Generally speaking, funds are processed within 1-2 working days. However, there have been reports of occasional delays. This could be due to Discover’s dual role as both network and issuer, which removes intermediaries but may also cause bottlenecks during busy times
Features and Capabilities
We’ve mentioned what Discover is best known for, but what about its other features and underlying capabilities? These also play a big part in your choice of payment processor or card network.
Discover offers a range of customer credit products alongside its regular merchant payment processing services. However, integrating both sides together can occasionally lead to slowness and operational challenges.
The platform in general integrates very well with the mobile app, but doesn’t have the advanced API capabilities and customization choices of some other providers. This could be an issue for e-commerce merchants. However, mobile payment integration is possible along with contactless capabilities, despite it requiring specific terminal compatibility.
Now, let’s talk about fraud protection. Discover has real-time fraud monitoring systems that operate across its entire infrastructure. This helps to spot any potential issues and flags them before they turn into disputes.
Pros of Using Discover
While there are pros and cons to using Discover, let’s first focus on the positives and look at the main pros.
Extensive US Merchant Network
As we’ve already mentioned, Discover is accepted by 10.64 million merchants in the US. While it lags behind Visa and Mastercard, it’s still a very wide network and gives peace of mind that your card will likely be accepted. It is also accepted in 200 countries and territories.
Competitive Personal Loan Rates
Discover offers competitive personal loan rates of 7.99% – 24.99% APR variable based on several factors, including loan amount, term, and creditworthiness. The available loan amount also varies between $2,500 to $40,000 with terms between 36 and 84 months available.
No Annual Fee Structure
Another big advantage of choosing Discover payment processing is its no annual fee policy. In fact, Discover doesn’t charge any annual fees on any of their cards, including student credit cards.
This helps you to cut costs over the long-term and navigate your financial waters more easily. This is particularly beneficial when you consider that most credit card companies do charge annual fees of some kind.
Additionally, Discover processing fees are generally low.
Cashback Matching Program
Discover is generally known for its rewards and one of those is the Cashback Matching Program. This means they will match all the cashback you earn in the first year. To break it down, at the end of your first year, all your earned rewards are matched so your cashback value is twice what you earn.

Discover payment processing offers a Cashback Matching Program, which significantly increases your earnings.
Cons and Limitations
We’ve looked at the good points, now let’s dig deeper into the potential downsides of choosing Discover and its general limitations.
Significantly Slower Processing Times
Although in general Discover aims to process payments within 1 to 2 business days, it all depends on when the payment request is submitted. Discover doesn’t process payments on a Saturday, and the Discover payment cut off time on a Friday is 5pm EST. Payments aren’t processed during the weekends.
Poor Customer Service Experience
One of the biggest downsides of choosing Discover is its customer service. There are many reports of poor responsiveness, language barriers, and trouble resolving issues. Customers have also noticed problems when trying to close accounts. All of this makes life more difficult for both customers and merchants, especially when trying to deal with a complex or worrying problem.
Limited International Acceptance
Earlier, we mentioned that Discover is accepted in 200 countries and territories, but many key markets aren’t included. Additionally, many merchants still prefer Visa or Mastercard, making it difficult to make payments while you’re traveling or making payments to vendors abroad.
During trips away, many customers take an additional card from one of the big networks with them, just in case. Of course, this adds a layer of confusion and inconvenience, which you probably don’t need while you’re away from home.
Criteria Evaluation
Processing Speed & Efficiency: 2/5
How long does Discover take to process payments? They generally aim to process payments within 1 to 2 business days but some users report delays of up to 2 to 3 days. Obviously, this is problematic if you’re waiting for a payment to go through, affecting cash flow and creating dissatisfaction issues amongst your customers. For that reason, we’ve rated Discover payment processing at 2 out of 5.
Acceptance & Coverage: 3/5
We’ve gone for a middle rating here as Discover does still have relatively good national and international reach. However, there are some gaps in the market which limits use, potentially causing problems for travelers and international merchants.
Fee Structure: 3/5
We mentioned that Discover’s credit cards don’t have any annual fees, which is a big bonus. The Discover processing fees in general are competitive, but there isn’t a whole lot of transparency for clarity. This can be difficult for businesses that are trying to implement accurate cost planning.
Customer Service Quality: 2/5
There are many reports of problems with customer service, which is why we have rated Discover two out of five for this very important category. With documented language barriers and problems closing accounts, all of this creates operational challenges. Not only does it impact the merchant but also the cardholder.

Discover payment processing has poor feedback on their customer service from many users.
Security & Fraud Protection: 3/5
While Discover does have its own fraud protection, giving good peace of mind, it lacks the advanced tools of the larger card networks. For that reason, we’ve given Discover a middle score here. It provides a good standard of protection, but could do better.
Integration Capabilities: 3/5
Discover’s standard integration options are good and there are few problems with integrating into existing systems. However, it does lack advanced API functionality and has less customization options than other payment processors.
While this may not be a problem for all, it could be a road block for some businesses. That’s why it’s so important to check integration with the systems you have before making a decision to go with Discover payment processing or not.
Reliability & Stability: 2/5
Customer reviews show several users left in limbo with sudden account closures. In addition, little explanation was given, which adds uncertainty to the situation. All businesses rely on consistent payment processing services to help run their business. When a situation like this arises, it causes cash flow problems, worry, and can disrupt operations.
The good news is that you won’t have this problem if you choose PayCompass. We’re all about helping you, not hindering.
Dispute Resolution: 1/5
Poor customer service in some cases has led to difficulties in dispute management. This leaves problems unsolved and causes extra anxiety for business owners who need to solve problems to ensure smooth business operations.
There have also been concerns over a lack of transparency in dealing with disputes, which is another reason for our low score for this criteria.
Community Reviews and Expert Recommendations
Discover has a mixed bag of reviews, some good, some negative. It’s important to weigh up both sides and consider what you need your payment processor to do before making a decision. By keeping that in mind, you’ll make a stronger choice and ensure that your preferences and requirements are covered.
Overall, Discover users find little wrong with the processing itself, but have concerns about poor customer support and lack of transparency. There are also worries over accounts being closed with little to no warning and a lack of explanation. However, on the positive side, users do enjoy Discover’s wide reach in the US and the lack of an annual fee.
Let’s take a look at some customer reviews.
DR had a bad experience with Discover which has affected their trust in the company, stating: “BEWARE – I canceled my credit card after DiscoverCard refused to back me after Meetup.com fraudulently billed my card for services they didn’t provide. DiscoverCard RETALIATED against me by not billing me for my last bill (and I believe they also canceled my payment) JUST SO they could charge me late fees & interest (I have paid my bill EVERY time for the last 30 years). I used to trust this company, but now I think they’re VILE.”
Capiz Greene had problems with unresponsive customer service, a problem many other people mention: “I don’t have the patience to write all the repetitive times I had to submit the SAME information, or the lack of communication or response from them. The people who field the calls at loss mitigation save for one, have been great, and helpful with information. But the loan processing side doesn’t communicate what’s going on, what stage of the process you’re in, or even do the basics of responding to an email.”
However, it’s certainly not all bad. Cassie has had nothing but good experiences with Discover, stating: “I don’t know why Discover has such bad reviews since I’ve never had any problems with them. Whenever I have some issues, like getting my card lost or problems with logging into the app, I call them and they answer within 5 minutes, unlike other banks or credit card services. I hate waiting time but Discover always have enough people to answer you promptly. I also love their cashback!”
Pricing Structure
Now let’s talk about the general pricing model and Discover processing fees.
The problem here is that Discover’s processing costs are less than transparent, which can cause problems for businesses trying to make strong decisions. There are variable fees, which is a percentage and a per-transaction flat fee that is paid for each transaction. However, the amount isn’t publicly posted.
What is more clear is their personal loan rates, which are 7.99%-24.99% APR with no origination fees. As we mentioned earlier, credit cards have no annual fees.
Superior Alternatives to Discover Payment Processing
We’ve explored Discover payment processing in detail and by now, you’ve probably got an idea of whether they’re the company for you or not. However, it’s important to think about alternatives so you have a rounded view. Lets take a look at four good alternatives to Discover.
PayCompass: The Premium Payment Processing Solution

PayCompass is an excellent alternative to Discover payment processing.
If you’re looking for a streamlined, simple, and worry-free alternative to Discover, we’re the place you should look toward. At PayCompass, we’re not about complicating things, we prefer to simplify everything so you can focus on what you do best – growing your business.
We specialize in high-volume and high-risk merchant accounts, but we offer a large range of services, including multi-currency capabilities, and high-quality fraud protection. We have designed our accounts to solve the problems that you face on a regular basis, with chargeback prevention one of the main tools we offer. Additionally, real-time transaction monitoring helps you spot any issues before they become major problems, and our customer support is excellent.
Many payment platforms don’t accept high-risk businesses, or they place heavy restrictions upon them. We’re not about that. We believe you should have the same chances as businesses that aren’t in your merchant category.
Stripe: Developer-Focused Payment Infrastructure
Another potential option is Stripe, who offer strong API capabilities and have a wide global reach. Stripe has a transparent pricing structure and they’re a good choice for e-commerce businesses. However, Stripe does have a history of restricting and prohibiting high-risk businesses, which counts out a large number of businesses from the start. Of course, a good Stripe alternative is therefore PayCompass.
Square: All-in-One Business Solution
Square is a platform that combines payment processing services with point of sale systems, business analytics, and inventory management. As such, it’s a one-stop-shop that makes life a little easier. It also has a flat-rate pricing model for extra predictability. However, as with Stripe, Square also heavily restricts or refuses to accept high-risk businesses.
Frequently Asked Questions
Does Discover process payments on Sunday?
A common question is does Discover process payments on Sunday, and the answer is no. Any payments submitted after 5pm on Friday are not processed until after the weekend. Of course, credit card authorizations continue during the weekends but payment processing services are only available during business days.
What is the Discover payment cut off time for same-day processing?
The Discover payment cut off time is 5pm EST. After this time, payments won’t be processed until the following business day, which will be Monday if the payment is submitted late on a Friday.
How does Discover's dispute resolution process work?
Discover’s dispute resolution process is less than transparent, so it’s difficult to assess it fully. Many users have stated their dissatisfaction during disputes, and decisions are often made without any full explanation of why. This is problematic for all users, but especially for businesses that need to be fully informed in order to run their businesses effectively.
What merchant categories does Discover restrict?
Discover has the same standard restrictions on high-risk businesses as many other major card networks. However, it doesn’t fully disclose a list of specific businesses. Instead, consider PayCompass, which doesn’t restrict high-risk businesses and has tailored merchant accounts to counteract traditional payment processing challenges.
How does Discover compare to other payment processors for international businesses?
We’ve reached the end of our Discover payment processing review, and it’s clear that it’s a mixed bag. While Discover certainly has some advantages, it still lacks in several key areas.
Customer service and a lack of transparency around disputes are two major areas that users often mention. Both of these are vitally important for cash flow, decision-making, and operational smoothness. Without them, business owners have a huge amount of uncertainty, which affects every part of their business.
While Discover has a wide acceptance rate within the US, it still lacks major acceptance overseas. Despite being available in 200 countries, there are key markets lacking, and this requires a back up system for international businesses. Again, this is less than efficient, and affects business decision-making.
So, what’s the answer? PayCompass.
As we’ve explored throughout this review, we aim to make your payment processing journey as smooth as possible. We don’t restrict or prohibit high-risk businesses; instead, we make your life easier. We understand what you face, and we know what you need.
All you need to do is contact us and speak to one of our experts. From there, we’ll walk you through the application stage. We offer fast acceptance and if, for whatever reason, you don’t make it this time, we’ll give you plenty of help and advice to boost your chances the next time.
So, if you’re ready to overcome road bumps and look to a smoother future, reach out to us today.
Final Thoughts
Now we’re at the end of our journey into the world of interchange fees, how do you feel? Do you think you’re already well equipped to optimize these fees, or do you need a completely new approach? It’s unsurprising if it’s the latter; many businesses simply don’t understand that there is a route toward reducing these fees and simply accept that. That’s a mistake; why not save money where you can?
While interchange fees are the most significant payment processing costs, they can be optimized, creating a significant cost saving for your business. It’s a complex landscape, for sure; that’s why so many businesses fail to dig too deep into it. However, by choosing an experienced payment processor, you’ll be able to take advantage of opportunities that come your way.
And that’s where PayCompass comes in. We’ve helped countless businesses in a number of industries, just like you.
We’re on hand to streamline your payment processing journey, creating optimization opportunities. We offer fair, transparent pricing, advanced chargeback prevention, and multi-currency processing. We specialize in helping high-risk businesses to overcome the challenges that have held them back so far, paving the way for business growth.
We can transform a complicated situation into one that’s calmer, easier, and more profitable for you over the long-term. Sounds interesting? Reach out to us today and let’s get started together.