Just curious, why is this not accepted as widely as Visa/MC ? Is it because of higher merchant fees like Amex ?
Discover is fairly new...first introduced in 1985 or 86. Also Discover is only issued by Discover Bank (one issuer-much like AMEX in the USA). MC/Visa are issued by thousands of banks. When a merchant signs up to take credit cards, usually through thier bank, the bank sets them up for Visa and Mastercard automatically. If you want to accept Amex, Discover, Diners Club, or JCB you have to contact that company and set it up---most merchants don't jump though that hoop. If enough people ask to use thier cards there, the merchant can often be persuaded to accept that card.
Discover charges the merchant lower fees than Visa/MC or Amex. Doing so was necessary in order to get its foot in the door, so to speak. I think it may have overtaken Amex by now in terms of the number of merchants who accept it (in the U.S.).
Oddly enough, there was a pizzaria in my college town that ONLY accepted Discover or AMEX (no VISA, no MasterCard) -ingenue
Amex charges the merchant a higher fee than visa/mastercard or discover. That is why Amex is not accepted everywhere.
