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Recently, Discover Financial Services (DFS - Analyst Report) launched a new direct banking product – Discover Cashback CheckingSM – a checking account offering cashback rewards. The account offers 10 cents of cashback for every payment transaction through debit card, online payment or check. The amount is automatically added to the Discover card Cashback Bonus balance of the accountholder after every transaction.

Additionally, Cashback Checking account offers various benefits such as no monthly fees, no minimum balance requirement, no charges for checks or replacement cards and no fees for transactions at 415,000 ATMs in the U.S. Moreover, an app allowing accountholders to deposit checks, pay bills and locate ATMs using their smartphones enhances the ease of access.

The Cashback Checking account also offers round-the-clock customer service from a dedicated U.S.-based team. It also offers protection in the form of no fraud liability from unauthorized transactions along with bill pay protection.

However, the account is currently available to select customers and will be opened to all customers eventually. The company is planning the complete roll out by 2014.

Since its inception, Discover Financial has grown to become one of the largest card issuers in the U.S. and a leading innovator in the credit card industry. Moreover, the company regularly forms alliances to boost card acceptances and expand its network.

The new Discover It card, launched in Jan 2013, offers the advantage of no annual fees or charges for over-limit, foreign transactions or pay-by-phone facility, while at the same time offers the rewards and benefits of other Discover cards.

Discover Financial currently carries a Zacks Rank #3 (Hold). Other companies in the financial sector that are worth considering are Visa Inc. (V - Analyst Report), Total System Services, Inc. (TSS - Analyst Report) and Encore Capital Group, Inc. (ECPG - Snapshot Report). All these companies carry a Zacks Rank #2 (Buy).

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