American Express vs Discover Financial Services: Founders, CEOs and History
American Express was founded in 1850 by Henry Wells, William Fargo, John Warren Butterfield and is led by Stephen Squeri. Discover Financial Services was founded in 1985 by Edward R. Telling, Ray Graham and is led by Richard D. Fairbank (Capital One Founder, Chairman & CEO).
Company facts
American Express
- Founded
- 1850
- Headquarters
- New York, New York
- Current CEO
- Stephen Squeri
- Employees
- 76,800
Discover Financial Services
- Founded
- 1985
- Headquarters
- Riverwoods, Illinois, United States
- Current CEO
- Richard D. Fairbank (Capital One Founder, Chairman & CEO)
- Employees
- 21,000
Founders
American Express
Henry Wells
The founding of American Express is a fascinating story of intense 19th-century corporate rivalry culminating in a monopolistic merger.
William Fargo
William Fargo co-founded American Express in 1850 alongside Henry Wells and John Butterfield, bringing operational discipline and route management expertise to the merger of competing express businesses.
John Warren Butterfield
John Warren Butterfield was one of the three founders of American Express in 1850 and served as a director, bringing the organizational resources, political connections and financial backing that made the merger viable.
Discover Financial Services
Edward R. Telling
Edward R. Telling was a highly influential American business executive and the transformative Chairman and CEO of Sears, Roebuck & Co., who spearheaded the massive corporate launch of Discover Financial Services.
Ray Graham
While historical records frequently misattribute the founding name to 'Ray Graham,' the true visionary behind the Discover Card's underlying concept was Ray Kennedy Sr., a highly brilliant credit manager at Sears.
CEOs and their tenures
American Express
- Howard L. Clark Sr.1960–1977
President and Chief Executive Officer
Howard Clark became chief executive in 1960 and ran American Express until 1977. He inherited a charge card business that was losing money two years after launch and pushed it to profitability by repositioning it as a premium product, raising the merchant disc…
Source - James D. Robinson III1977–1993
Chairman and Chief Executive Officer
James Robinson III presided over American Express during a period of both genuine growth and serious strategic overreach.
Source - Harvey Golub1993–2001
Chairman and Chief Executive Officer
Harvey Golub inherited a company left unfocused and financially weaker by James Robinson III's financial conglomerate strategy.
Source - Kenneth Chenault2001–2018
Chairman and Chief Executive Officer
Kenneth Chenault led American Express for 17 years through two severe shocks: the September 11 attacks in 2001, which hit its lower Manhattan operations and its travel-dependent business weeks after he became chief executive, and the 2008 financial crisis, dur…
Source - Stephen J. Squeri2018–present
Chairman and Chief Executive Officer
Stephen Squeri took over from Kenneth Chenault in February 2018 and has run the most financially productive period in the company's history, with FY2025 total revenues net of interest expense of $72.2 billion and net income of $10.8 billion, both records.
Source
Discover Financial Services
- David Nelms2004–2018
Chairman and Chief Executive Officer
Led Discover through its 2007 spin-off from Morgan Stanley.
Source - Roger Hochschild2018–2023
President and Chief Executive Officer
Succeeded David Nelms on October 1, 2018 and resigned in August 2023 amid regulatory problems.
Source - J. Michael Shepherd2024–2025
Interim Chief Executive Officer & President
Former Chairman and CEO of Bank of the West; leading regulatory compliance remediation and closing the $35.3B Capital One merger.
Source
Timeline: American Express and Discover Financial Services side by side
1850American Express
American Express founded in Buffalo, New York
Henry Wells, William Fargo and John Butterfield merged three competing express businesses on March 18, 1850 to form the American Express Company, an unincorporated joint-stock association capitalized at 150,000 dollars.
1882American Express
Money order launched
American Express introduced its own money order, competing directly with the postal money order the United States Post Office had offered since 1864.
1891American Express
Traveler's cheque invented
Marcellus Berry created the American Express Traveler's Cheque after president J.C. Fargo struggled to cash letters of credit on a European trip in 1890.
1917American Express
Federal control of the express industry
Federal control of the railroads began in December 1917, and in 1918 the domestic express operations of American Express and its rivals were consolidated into the American Railway Express Company.
1958American Express
First American Express charge card
American Express issued its first charge card on October 1, 1958, printed on paper with a 6 dollar annual fee, after signing up more than 250,000 card members before launch.
1966American Express
Gold Card introduced
American Express launched the Gold Card in 1966 for higher-spending executives and frequent travelers, the first tier above the standard card and the start of the graded premium lineup that later added the Platinum Card and the Centurion Card.
1984American Express
Platinum Card launched during the financial supermarket build-out
American Express introduced The Platinum Card by invitation in 1984 with a 250 dollar annual fee, creating the ultra-premium card category.
1985Discover Financial Services
Sears Establishes Discover Card Network
Sears, Roebuck and Co. established Greenwood Trust Company to build an independent payment network.
1986Discover Financial Services
Super Bowl XX National Launch
Debuted the first no-annual-fee card with the Cashback Bonus during Super Bowl XX.
1993American Express
Harvey Golub refocuses the company
Harvey Golub became chief executive in 1993 and unwound the conglomerate: the Shearson brokerage went to Primerica's Smith Barney and The Boston Company to Mellon Bank in 1993, and Lehman Brothers was spun off in 1994.
1993Discover Financial Services
Spun off to Dean Witter Discover
Sears spun off Discover into Dean Witter Discover & Co., which later merged with Morgan Stanley.
1999American Express
Centurion Card launched
American Express created the Centurion Card in 1999, an invitation-only metal card that became the top tier of its lineup. The company has never published its fee schedule, and the product functions mainly as a positioning device for the cards below it.
2001American Express
Kenneth Chenault becomes chief executive
Kenneth Chenault became chief executive in January 2001, weeks before the September 11 attacks damaged the company's lower Manhattan operations and cut travel spending sharply.
2005Discover Financial Services
Acquisition of PULSE Debit Network ($311M)
Acquired PULSE, becoming a major ATM and PIN debit routing network in the US.
2007Discover Financial Services
Morgan Stanley Spin-Off & NYSE Listing
Listed as an independent public direct bank on the NYSE under ticker symbol DFS.
2008American Express
Conversion to a bank holding company
On November 10, 2008 the Federal Reserve Board approved applications by American Express Company and American Express Travel Related Services to become bank holding companies, on conversion of American Express Centurion Bank from an industrial loan company int…
2008Discover Financial Services
Acquisition of Diners Club International ($165M)
Acquired Diners Club from Citigroup, expanding Discover Global Network acceptance worldwide.
2013Discover Financial Services
Launch of Discover it Card Program
Introduced the Discover it card with 5% rotating categories and Cashback Match.
2016American Express
Costco co-brand ends
Costco moved its United States co-branded card to Citigroup and Visa on June 20, 2016, ending a 16-year exclusive relationship after the two sides failed to agree terms, and stopped accepting American Express cards in its warehouses.
2018American Express
Stephen Squeri becomes chairman and chief executive
Stephen Squeri succeeded Kenneth Chenault in February 2018 after more than three decades inside the company, including spells as chief information officer and group president of Global Corporate Services.
2020American Express
Pandemic hits travel and entertainment spending
COVID-19 restrictions cut the travel and entertainment spending American Express depends on, and total revenues net of interest expense fell from 43.6 billion dollars in 2019 to 36.1 billion dollars in 2020, with net income down to 3.1 billion dollars.
2024American Express
Tock acquisition widens the dining platform
American Express agreed in June 2024 to buy Tock, a reservation, table and event management platform, from Squarespace for 400 million dollars in cash, pairing it with Resy, which it had bought in 2019.
2024Discover Financial Services
Capital One Announces $35.3B Acquisition Agreement
Capital One announced an agreement to acquire Discover in an all-stock mega-deal.
2025American Express
Platinum refresh and record FY2025 results
American Express unveiled refreshed United States Consumer and Business Platinum Cards on September 18, 2025, raising the annual fee from 695 dollars to 895 dollars and adding statement credits it values at over 3,500 dollars a year.
2025Discover Financial Services
Capital One Completes Acquisition
Capital One closed its purchase of Discover on May 18, 2025 after Federal Reserve and OCC approval; fair-value consideration was $51.8 billion.
2026Discover Financial Services
Debit and Card Account Migration
About 25 million Capital One debit cards moved to the Discover network, and Discover card accounts began moving to Capital One's platform in waves running into 2027.
Acquisitions
American Express
- Center2025Undisclosed
- Tock2024$400M
- Kabbage2020Undisclosed
- Resy2019Undisclosed
- Loyalty Partner2011$660M
- Thomas Cook corporate travel and United States travel offices1994$375M
Discover Financial Services
- Student Loan Corporation2010Undisclosed
- Diners Club International2008$165M
- PULSE EFT Association2005$311M
- Greenwood Trust Company1985Undisclosed
Questions about American Express vs Discover Financial Services
Who is the CEO of American Express Company and Discover Financial Services?
American Express Company is led by Stephen Squeri and Discover Financial Services is led by Richard D. Fairbank (Capital One Founder, Chairman & CEO). Both serve as the top executive responsible for the company's strategy, operations, and financial performance.
When was American Express Company founded vs Discover Financial Services?
American Express Company was founded in 1850 — 135 years before Discover Financial Services, which was founded in 1985. American Express Company's longer operating history gives it a deeper track record but also potentially more institutional inertia compared to the younger Discover Financial Services.
How many employees does American Express Company have compared to Discover Financial Services?
American Express Company employs approximately 76,800 people, while Discover Financial Services employs approximately 21,000. American Express Company has the larger workforce at 76,800 employees, compared to Discover Financial Services's 21,000. A higher headcount does not necessarily imply greater efficiency — it often reflects differences in business model (e.g., manufacturing vs. software).
Where are American Express Company and Discover Financial Services headquartered?
Both American Express Company and Discover Financial Services are headquartered in United States, meaning they operate under the same primary regulatory and tax environment.
Who founded American Express Company and Discover Financial Services?
American Express Company was founded by Henry Wells, William Fargo, John Warren Butterfield. Discover Financial Services was founded by Edward R. Telling, Ray Graham.
Which company has a longer operating history — American Express Company or Discover Financial Services?
American Express Company has been operating for approximately 176 years, making it the more established of the two companies. Discover Financial Services has been in operation for around 41 years. A longer operating history often signals greater institutional resilience and brand recognition, though it can also mean slower adaptation to new market conditions.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the American Express vs Discover Financial Services overview