Discover 2014 Annual Report Download - page 21

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•Discover More card offers 5% Cashback Bonus in categories that change throughout the year up to a quarterly
maximum (signing up is required) and up to 1% Cashback Bonus* on all other purchases.
•Discover Open Road card offers 2% Cashback Bonus on the first $250 spent in combined gas and restaurant
purchases each billing period and up to 1% Cashback Bonus* on all other purchases.
•Miles by Discover customers receive two miles for every $1 on the first $3,000 spent in travel and restaurant
purchases each year, one mile for every $1 spent thereafter, and one mile for every $1 spent on all other
purchases.
•Escape by Discover customers receive two miles for every $1 on all purchases. This card has a $60 annual fee.
•Discover Business card offers 5% Cashback Bonus on the first $2,000 spent in office supply purchases, 2%
Cashback Bonus on the first $2,000 spent in gas purchases each year and up to 1% Cashback Bonus* on all
other purchases.
* With Discover Deals, customers can shop at top merchants and earn additional Cashback Bonus or miles, a statement credit on their Discover account or
instant savings at checkout both online and in stores. Cashback Bonus can be redeemed for (i) merchant partner gift cards (starting at $20) that add $5 or
more to their reward, (ii) Discover gift cards (starting at $20, available through April 1, 2015), (iii) charitable donations to select charities (starting at 1 cent),
(iv) in the form of a statement credit (starting at 1 cent), or (v) electronic deposit to a bank account (starting at 1 cent). Miles can be redeemed for (i) partner
gift cards (starting at 1,000 miles), (ii) Discover gift cards (starting at 5,000 miles, available through April 1, 2015), (iii) cash in the form of statement credits
or direct deposits (starting at 2 miles), (iv) charitable donations to select charities (starting at 2 miles), or (v) for the Escape card only, travel credits starting at
10,000 miles.
Protection Products
We currently service and maintain existing enrollments of the protection products detailed below for our credit
card customers. Although we suspended new sales of these products to consumers at the end of 2012, we may resume
offering similar products in the future.
•Identity Theft Protection. The most comprehensive identity theft monitoring product we offer includes an initial
credit report, credit bureau report monitoring at the three major credit bureaus, prompt alerts to key changes to
credit bureau files that help customers spot possible identity theft quickly, internet surveillance to monitor up to
20 credit and debit card numbers on suspicious websites, identity theft insurance up to $25,000 to cover
certain out-of-pocket expenses due to identity theft, and access to knowledgeable professionals who can
provide information about identity theft issues.
•Payment Protection. This product allows customers to suspend their payments for up to two years, depending on
the qualifying event and product level, when certain qualifying life events occur. While on benefit, customers
have no minimum monthly payment, and are not charged interest, late fees or the fees for the product. This
product covers a variety of different events, such as unemployment, disability, natural disasters or other life
events, such as marriage or birth of a child. Depending on the product and availability under state laws,
outstanding balances up to $10,000 or $25,000, depending on product level are cancelled in the event of
death.
•Wallet Protection. This product offers one-call convenience if a 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 at the three major credit bureaus for 180 days and alerting them to key changes to their
credit files, providing up to $100 to replace the customer's wallet or purse and, if needed, allowing the
customer up to a $1,000 cash advance on his or her Discover card account.
•Credit ScoreTracker. This product offers customers resources that help them understand and monitor their credit
scores. 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 customers understand the
factors that may be influencing their scores.
In addition to the protection products above, our credit card customers can purchase online service warranties
from our extended warranty provider to protect purchases of new electronics and appliances as well as certain other
purchases.
Brand and Advertising Management
We maintain a full-service marketing department charged with delivering integrated mass and direct
communications to foster customer engagement with our products and services. Our brand team utilizes consumer
insights and market intelligence to define our mass communication strategy, create multi-channel advertising messages
and develop marketing partnerships with sponsorship properties. This work is performed in house as well as with a
variety of external agencies and vendors.