Discover 2009 Annual Report Download - page 18

prospect database, use of credit bureau data and use of a customer contact strategy and management system, we have
been able to improve our modeling and customer engagement capabilities, which help us offer the right products and
pricing at the right time and through the right channels.
Rewards/Cashback Bonus
Under our Cashback Bonus rewards program, we provide customers with up to 1% Cashback Bonus, based upon their
spending level and type of purchases. Customers earn 0.25% on their first $3,000 in annual purchases and 1% once their
total annual purchases exceed $3,000. Purchases made at warehouse clubs and discount stores earn a fixed Cashback
Bonus reward of 0.25%.
Customers can choose from several card products that allow them to earn their cash rewards faster based on how they
want to use credit as set forth below.
•Discover More card offers 5% Cashback Bonus on purchases up to a specified amount, subject to certain limitations,
in large retail categories such as gasoline, grocery, restaurants, travel, department stores and home improvement
stores, that change throughout the year, and up to 1% Cashback Bonus on all other purchases.
•Discover Motiva card provides customers with a full month’s interest as a reward each time they make six
consecutive on-time payments.
•Miles by Discover card customers receive two miles for every $1 on the first $3,000 in travel and restaurant
purchases each year and one mile for every $1 on all other purchases.
•Escape by Discover card customers earn two miles for every $1 on all purchases that can be redeemed for travel
credits, gift cards or cash. This card has a $60 annual fee.
•Discover Open Road card customers can earn 2% Cashback Bonus on the first $250 in gas and restaurant
purchases each billing period and up to 1% Cashback Bonus on all other purchases.
•Discover Business card offers 5% Cashback Bonus on the first $2,000 in office supply purchases, 2% Cashback
Bonus on the first $2,000 in gas purchases and up to 1% Cashback Bonus on all other purchases each year.
Customers who are not delinquent or otherwise disqualified may redeem Cashback Bonus rewards at any time starting
at $20 for Discover gift cards, partner gift cards or charitable donations to select charities. Customers also have the
option to choose to redeem their Cashback Bonus awards for a statement credit or direct deposit to a bank account
starting at and in increments of $50. Customers have the opportunity to increase their reward, up to double the reward
amount, when they redeem for a brand name gift card from over 100 merchant partners.
Fee Products
We market several fee-based products to our customers, including the following:
•Identity Theft Protection. The most comprehensive identity theft monitoring service we offer includes an initial credit
report, credit bureau report monitoring, prompt alerts that help customers spot possible identity theft quickly, and
access to knowledgeable professionals who can provide information about identity theft issues or credit reports.
•Payment Protection. This service allows customers to suspend their payments for up to one or two years, depending
on the product, in the event of certain covered events. Different products cover different events, such as
unemployment, disability or other life events. Depending on the product and state laws, outstanding balances up to
certain amounts are cancelled in the event of death.
•Wallet Protection. This service offers one-call convenience if the customer’s wallet is lost or stolen, including requesting
cancellation and replacement of the customer’s credit and debit cards, monitoring the customer’s credit bureau reports
for 90 days, providing up to $100 to replace the customer’s wallet and, if needed, lending the customer up to $1,000
in emergency cash.
•Credit ScoreTracker. This product offers customers resources that help them understand and monitor their credit
score. Credit ScoreTracker is specifically designed for score monitoring by alerting customers when their score
changes, allowing customers to set a target score and providing resources to help them understand the factors that
may be influencing their score.
-6-