Discover 2015 Annual Report Download - page 19

-3-
students are generally eligible to receive a reward for achieving a specified grade point average during the academic
period covered by the loan.
Personal Loans
Our personal loans are unsecured loans with fixed interest rates, terms and payments. These loans are primarily
intended to help customers consolidate existing debt, although they can be used for other reasons. We generally market
personal loans to our customers through direct mail advertising complimented by other marketing channels. Customers
can submit applications via phone, online or through the mail, and can service their accounts online or by phone.
Home Equity Loans
We offer closed-end home equity loans to help consumers improve their homes as well as payoff higher interest
debt. These loans are fixed term and rate loans that provide consumers the stability of a fixed payment on their
obligation while being secured against the equity in their homes. We market this product primarily to existing card
customers through a mix of direct mail, internet advertising and email. Non-Discover customers can obtain information
regarding Discover home equity products on our website and have the ability to apply by calling a personal banker.
Deposits
We obtain deposits from consumers directly or through affinity relationships ("direct-to-consumer deposits") and
through third-party securities brokerage firms that offer our deposits to their customers ("brokered deposits"). Our
deposit products include certificates of deposit, money market accounts, online savings and checking accounts and
Individual Retirement Arrangement certificates of deposit. We market our direct-to-consumer deposit products to our
existing customer base and other prospective customers through the use of our website, mobile platform, print materials,
direct mail, affinity arrangements with third parties and internet advertising. Customers can apply for, fund and service
their deposit accounts online or via phone, where we have a dedicated U.S. based staff within our call centers to service
deposit accounts. For more information regarding our deposit products, see "Management's Discussion and Analysis of
Financial Condition and Results of Operations — Liquidity and Capital Resources — Funding Sources — Deposits."
Payment Services
Set forth below are descriptions of PULSE, Diners Club and our Network Partners business, which provides among
other services payment transaction processing and settlement services.
PULSE
Our PULSE network is one of the nation’s leading debit/ATM networks. PULSE links cardholders served by
approximately 4,900 financial institutions to ATMs and POS terminals located throughout the United States. This includes
more than 3,400 financial institutions with which PULSE has direct relationships and approximately 1,400 additional
financial institutions through agreements PULSE has with other debit networks. PULSE also provides cash access at 1.8
million ATMs in more than 125 countries.
PULSE's primary source of revenue is transaction fees charged for switching and settling ATM, personal
identification number ("PIN") POS debit and signature debit transactions initiated through the use of debit cards issued
by participating financial institutions. In addition, PULSE offers a variety of optional products and services that produce
income for the network, including signature debit transaction processing, debit card fraud detection and risk mitigation
services, and connections to other regional and national electronic funds transfer networks.
When a financial institution joins the PULSE network, debit cards issued by that institution are eligible to be used at
all of the ATMs and PIN POS debit terminals that participate in the PULSE network, and the PULSE mark can be used on
that institution's debit cards and ATMs. In addition, financial institution participants may sponsor merchants, direct
processors and independent sales organizations to participate in the PULSE PIN POS and ATM debit service. A
participating financial institution assumes liability for transactions initiated through the use of debit cards issued by that
institution, as well as for ensuring compliance with PULSE's operating rules and policies applicable to that institution's
debit cards, ATMs and, if applicable, sponsored merchants, direct processors and independent sales organizations.
When PULSE enters into a network-to-network agreement with another debit network, the other network's
participating financial institutions' debit cards can be used at terminals in the PULSE network. PULSE does not have a
direct relationship with these financial institutions and the other network bears the financial responsibility for transactions
of those financial institutions' cardholders and for ensuring compliance with PULSE's operating rules.