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Capital One Pushes Deeper Into AI as Card Spending Grows

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Capital One Pushes Deeper Into AI as Card Spending Grows

Card purchase volume rose 11% as legacy Capital One customers continued to drive spending growth.

Domestic card charge-offs fell 65 basis points from a year earlier, while delinquencies remained below last year’s level.

Capital One is testing the migration of credit cards onto Discover after completing its debit conversion.

Capital One’s cardholders continued spending in the third quarter while credit losses declined, giving the bank room to pursue two expensive strategic priorities: building more volume on the Discover network and investing further in generative and agentic artificial intelligence.

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The Oct. 20 results showed that credit card purchase volume increased 11% year over year to $254.7 billion. CEO Richard Fairbank said the increase came primarily from legacy Capital One customers, while legacy Discover purchase volume was essentially flat amid the company’s temporary slowdown in Discover loan growth. Excluding Discover, ending card loans grew about 6%.

The figures indicate continued activity among Capital One’s card customers without a corresponding year-over-year deterioration in card credit.

Domestic card charge-offs fell to 3.98%, down 65 basis points from a year earlier and 73 basis points from the second quarter. Delinquencies stood at 3.74%, 15 basis points below last year but 35 basis points above the second quarter. Management said the sequential increase was consistent with normal seasonality.

Capital One released $250 million of domestic card reserves based on favorable observed credit performance, although it also gave greater consideration to downside economic scenarios related to geopolitical risks.


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