By Robin Sidel
Discover Financial Services Chief Executive David Nelms said the
company will spend more than $35 million in 2015 on new credit
cards that contain a computer chip to combat fraud.
The amount includes the cost of issuing new cards to customers
as well as efforts needed to prepare Discover's card-processing
network for the cards, he said at a financial-services industry
conference.
U.S. card companies are racing to issue the new chip cards that
are more difficult to counterfeit than traditional cards containing
a magnetic stripe.
Mr. Nelms also said that the Riverwoods, Ill.-based company will
spend more than $75 million next year to meet regulatory
requirements on anti-money-laundering programs and to comply with
the Bank Secrecy Act.
In June, Discover reached an agreement with the Federal Deposit
Insurance Corp. to enhance its procedures to prevent money
laundering and adopt a revised compliance program for the Bank
Secrecy Act.
Discover has disclosed that the Federal Reserve also intends to
enter a similar type of agreement with the company.
Write to Robin Sidel at robin.sidel@wsj.com
Access Investor Kit for Discover Financial Services
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US2547091080
Subscribe to WSJ: http://online.wsj.com?mod=djnwires