The news: Capital One is already shifting some credit cards onto its Discover network, per The Street.

In a statement to The Street, a Capital One spokesperson confirmed that the company has started originating credit card accounts on its Discover network. Impacted cards include Venture, Savor, Quicksilver, VentureOne, SavorOne, and QuicksilverOne, per updated benefit guides.

Why this matters: Moving credit cards to Discover improves Capital One’s transaction margins. 

As the bank shifts its debit products and now credit cards onto Discover, Capital One faces its first real test of the network’s acceptance limits, especially after cardholders have enjoyed the reach of Mastercard- and Visa-backed cards.

Possible snags: Capital One cardholders already faced backlash from its members during the debit transition concerning limited acceptance. 

Credit cardholders may be even more unhappy to find their card gets declined for purchases overseas, especially when rewards are geared toward travel. 

Cardholders may also notice losing a few other perks: Before the transition, credit cards like Savor were in Mastercard World Elite tier, which gave benefits like 24/7 concierge service for lifestyle needs and travel bookings and exclusive access to sporting, entertainment, and dining events. Discover doesn’t have the same tiered perks embedded in its network—a potential downgrade for cardholders who get switched from Mastercard.

Tellingly, Capital One’s premium travel card, Venture X, will remain—for now—on the Visa network.

Implications for issuers: If rollouts cannot be seamless, then the customer service rectifying the issue after the fact has to be. Beefing up customer service teams and preempting potential pitfalls of card transitions signals trustworthiness to cardholders.

For competing issuers, marketing wide acceptance and more robust rewards could help poach Capital One cardholders to new portfolios. Highlighting the strengths of Visa- and Mastercard-backed networks, especially for international acceptance and other luxury perks, can help pick up new customers in mid-tier brackets.