Discover Financial Services (NYSE:DFS)’s Direct Banking and Payment Services


Dallas, Texas 11/06/2013 (Financialstrend) – In Tuesday’s trading, Discover Financial Services (NYSE:DFS) dropped by 0.57%. The opening price of the shares was $51.97, which climbed to an intraday high of $52.32 and dipped to a close of $51.92. Approximately 2.42 million shares were traded on Tuesday while an average volume of 3.14 million shares were traded over a 30 day period. The 52-week low of Discover Financial Services (NYSE:DFS) shares is $37.24 and its 52-week high is $54.45. The company has a market capitalization of $25.03 billion.                                        

About the company

Discover Financial Services (NYSE:DFS) was incorporated on 25 July 1960. It is a direct banking & payment services company. It is a bank holding-company & a financial-holding company. It offers credit cards, student-loans, personal loans &deposit products via Discover Bank, its subsidiary as well as home loans via Discover Home Loans. This is also a subsidiary of the company.

It operates the Discover Network, the credit card-payments network and the PULSE network. The company’s automated teller machine, debit & electronic funds-transfer network as well as the Diners Club International- the company’s its global-payments network. Discover Financial Services (NYSE:DFS) operates in two distinct business segments: 1- Direct Banking and the 2nd segment is Payment Services. In 2012 June Tree.Com Inc sold-off the operating-assets of the company’s Home Loan Center business to the wholly-owned subsidiary of Discover Financial Services.

Direct Banking

Discover Financial Services (NYSE:DFS) offers its credit cards to consumers & small businesses. Its credit card customers are allowed to revolve their own balances & repay their obligations over time & at the interest rate that has been set in their card-member agreements. These could be either fixed /variable.

The interest that is earned by the company is on the revolving credit-card balances and accounts for almost 86% of the company’s total interest income. Discover Financial Services (NYSE:DFS) also charges customers various other fees, including-fees for late-payments, balance-transfer transactions & cash-advance transactions.