Capital One has started sending Discover it cardholders a formal change-in-
terms notice for the next wave of the Discover integration. The notice,
landing in inboxes in early August 2026, confirms these accounts move to the
Capital One app and website on October 19, 2026, with a new set of
account terms taking effect a few days earlier on October 16, 2026.
Student cards got a similar email on August 2, and an earlier wave of
Discover accounts already transitioned on July 27, 2026.
New minimum payment formula
Under the new terms, if the balance is under $35 the minimum payment is
the full balance. Otherwise it is the greater of $35, 2 percent of
the balance, or 1 percent of the balance plus new interest and late
payment fees, with any past due amount added on top. Notably, the notice
says the minimum payment structure is assigned based on recent payment
history, so different cardholders may see different formulas.
Rates update faster
Variable APRs will now key off the Prime Rate published in The Wall Street
Journal on the 25th of each month, with changes taking effect on the
first day of the next month's billing cycle. Discover read the Prime Rate on
a different day, so this mostly changes how quickly rate moves show up on
the account. The variable APR is capped at 29.99 percent. The billing
cycle also changes shape: the cycle will close 25 days before the
payment due date, which means the closing date can shift by up to 3 days
month to month while the due date stays fixed.
Rewards rules tighten at the edges
Two rewards changes stand out. Starting October 15, 2026 at 5 p.m. ET,
redeeming cash back as a statement credit will no longer count toward the
minimum monthly payment, so cardholders who leaned on rewards to cover the
minimum will need to make a real payment. And while rewards still never
expire for the life of the account, Capital One will no longer automatically
credit or mail out the rewards balance when an account is closed, so
cardholders should redeem before closing.
The earning side is untouched: 5 percent cash back in rotating quarterly
categories up to the quarterly maximum with activation, 1 percent
everywhere else, and Cashback Match for new cardmembers all carry over.
Capital One is also extending 5 percent back on hotels, vacation rentals,
and rental cars booked through Capital One Travel and on Capital One
Entertainment purchases.
Identity Alerts shut down, FICO moves to CreditWise
Free Discover Identity Alerts will be discontinued as early as October 1,
2026 and fully deactivated by October 16. Free FICO Score 8 access
survives, but cardholders will have to enroll in CreditWise, Capital
One's credit monitoring tool, to see it online and on statements.
Smaller print worth noting
The new customer agreement updates the arbitration provision and includes
instructions for rejecting it, which cardholders who care about preserving
court options should review. The minimum interest charge is being removed
entirely, a small win. Late fees run up to $41, returned payments up to
$30, and cash advances cost the greater of $10 or 5 percent.What stays the same
The physical card and card number do not change, the card stays on the
Discover network, and there is still no annual fee. There is nothing for
cardholders to do right now, though it is worth confirming autopay and saved
payment details survive the October cutover and watching for the Capital One
login setup prompt.