I realize this is the credit card forum, but debit cards are tangentially related, and it's very topical to the OP thread.

This was widely predicted, but Cap1 is issuing new debit cards as Discover and is transitioning existing cardholders to Discover over time (see the information page on Cap1's site here for existing cardholders). This was an obvious move as Discover/PULSE are Durbin debit swipe fee cap exempt (issuer is network, as Discover is now part of Cap1 this applies if they put Discover on the debit card).R

No word yet on anything on the credit card front switching to Discover. I suspect that the debit cards are lower hanging fruit, and that Cap1 is likely in a very unique position with Visa/MC. Visa/MC could tell Cap1 to shove it, but they'd risk a lot of domestic marketshare on the non-travel cards. On the other hand, if they somehow agree to a double badging strategy (Discover primary and Visa/MC secondary for international acceptance) they could sacrifice a lot of domestic purchase volume and open the floodgates for other banks to demand dual credit network issuance. Only time will tell.