The Diners Club CS credit card company is ending its business activities in Slovakia. (source: Diners Club)
The Diners Club CS credit card company is ending its business activities in Slovakia and the Czech Republic following a decision of its business partner.
Diners Club, an international company founded in the USA more than 70 years ago, became a pioneer in credit cards for travel and entertainment around the world, but did not have a large market share in Slovakia and Europe when compared to Visa and Mastercard.Diners Club, an international company founded in the USA more than 70 years ago, became a pioneer in credit cards for travel and entertainment around the world, but did not have a large market share in Slovakia and Europe when compared to Visa and Mastercard.
Still, Diners Club CS had been successful for a long time. Even before the pandemic, it had annual sales of €4.3 million with a profit of €300,000 to €450,000, Index magazine wrote.
The firm will shut down its operations in Austria next year.
Cards will expire in August
In Slovakia, 20,000 credit cards were issued, which with a total of 510,000 credit cards in Slovakia, accounts for about 4 percent.
“The cards issued so far will operate until the expiration of the concluded contracts [August 3], while all the functions of Diners Club International payment cards will be retained during this period, as well as the added value in our benefits, travel insurance and loyalty program,” Diners Club CS said.
Further acceptance of Diners Club International, Discover® and PULSE® brands on the Slovak and Czech markets will continue and develop, directly in cooperation with payment institutions with the Discover® global network, the company said.
UniCredit Bank behind the decision
It is reportedly UniCredit Bank, the business partner, which decided in mid-May to wrap up Diners Club CS' activities in the region.
The real owner of the Diners Club brand is the American company Discover Financial Services, but the brand itself is subject to franchising. In Central Europe, it is the Austrian financial group DC Bank AG. The group is responsible for the sale of Diners Club cards in Austria, Germany, Poland, Slovakia and the Czech Republic.
DC Bank AG is a subsidiary of Card Complete Service Bank and is owned by the the Italian banking group UniCredit Bank at more than 50 percent ownership.
In previous years, Diners Club gradually left Finland, France and the Benelux countries.
