This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.
Discover announced that it will be doing away with five benefits that currently come with its cards. As of February 28, 2018, Discover will completely discontinue its Extended Product Warranty, Return Guarantee, Purchase Protection, Auto Rental Insurance and Flight Accident Insurance perks from all of its cards.
In a statement, Discover said that it’s discontinuing these benefits because they were seldom used. More specifically, the issuer told TPG:
“We regularly evaluate our cardmember benefits to ensure that we are meeting or exceeding our cardmembers’ current needs and expectations. We recently notified Discover cardmembers that due to prolonged low usage, effective February 28, 2018, we will discontinue Extended Product Warranty, Return Guarantee, Purchase Protection, Auto Rental Insurance and Flight Accident Insurance.”
Usually when we see changes from major issuers, it’s for individual products — not an issuer’s entire portfolio of cards. In addition, Discover isn’t doing away with just one benefit, but rather it’s slashing five. That being said, Discover will continue to offer several complimentary benefits on its cards, such as Price Protection.
As a reminder, you’ll be able to continue using the soon-to-be-axed benefits until February 28, 2018. As of that date, Discover cards such as the Discover it® Cash Back and the Discover it® Miles, among others, will lose them completely.
Ultimately, it’s never good to see an issuer strip benefits away from all of its cards — or any of its cards for that matter. But if the benefits were underutilized by Discover cardholders, it makes sense on Discover’s end to drop them in favor of something that will be more beneficial to cardholders. At this point, there’s no indication what kind of benefits, if any, will replace those that are being discontinued.
Featured image by Isabelle Raphael.
H/T: Doctor of Credit
Know before you go.
News and deals straight to your inbox every day.
Set your own sign-up bonus with the Discover It Miles card. Any rewards you earn in the first year will automatically be matched at the end of the year and you'll earn an unlimited 1.5 miles on all purchases with no annual fee.
- Intro Offer: Discover will match all the Miles you've earned at the end of your first year, automatically. For example, if you earn 35,000 Miles, you get 70,000 Miles. That's $700 towards travel!
- Earn unlimited 1.5x Miles for every dollar spent on all purchases all with no annual fee.
- No Blackout Dates – fly any airline, stay at any hotel.
- Redeem your Miles as a statement credit towards travel purchases.
- Freeze your account in seconds with an on/off switch either on the mobile app or website to prevent new purchases, cash advances, and balance transfers.
- Get your free Credit Scorecard with your FICO® Credit Score, number of recent inquiries and more.
- Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
- Rates & Fees