Discover is a digital bank and payments network company. Its core business is issuing credit cards directly to U.S. consumers — primarily through digital channels and direct mail — under the Discover brand. All Discover cards carry no annual fee and offer cashback rewards. Discover processes its own card transactions over the Discover Network, which it owns and operates, giving it a vertically integrated model unlike Visa or Mastercard. Beyond credit cards, Discover offers personal loans, home equity loans, and direct-to-consumer deposit products (savings accounts, CDs, and checking accounts), all sold online or by phone with no branch network. Discover makes money primarily by lending to credit card customers and charging interest, with NIM (the spread between card yield and deposit funding costs) as the key earnings driver. Because Discover owns its network and issues cards directly, it captures economics on both sides of a transaction — earning both the card issuer spread and network fees — but also bears all the credit risk itself. Discover's payment services segment also includes PULSE, a U.S. debit and ATM network, and Diners Club International, a global charge card network operated through licensees. Discover is pending acquisition by Capital One in an all-stock deal, which would give Capital One ownership of a major card network for the first time.