<ul><li>The FDIC and the Federal Reserve fined Discover Financial Services and its subsidiaries for misclassifying consumer credit cards as commercial, resulting in higher interchange fees.</li><li>Discover Bank has been ordered to pay $1.225 billion in restitution and a $150 million civil money penalty.</li><li>Millions of consumer credit cards were affected over 17 years, leading to over $1 billion in overcharged interchange fees for merchants.</li><li>Capital One Financial is set to acquire Discover Financial Services with approval from the Federal Reserve, and Discover has terminated the misclassification practices.</li></ul>

FDIC and Federal Reserve Fine Discover, Alleging Credit Card Misclassification

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