Discover has certainly been busy since the start of the New Year. On January 4, the credit card issuer announced the launch of a national sweepstakes called, “It Pays to Discover Everyday Giveaway.” Every purchase made with a Discover card, through the end of 2010, will qualify for a chance to win up to $1 million. Cardholders will also earn extra sweepstakes entries by using their Discover card in targeted categories such as restaurants, salons & spas, and dry cleaners.

In January, Mintel Comperemedia witnessed the sweepstakes campaign as a direct mail insert, with customer communications promoting a 0% teaser rate for purchases. The communication represents a multi-pronged effort to drive up share of wallet for new charges, ahead of the next phase of CARD Act regulations.

Some communications I’ve seen promote a 0% purchase APR on all new purchases for seven months. Discover’s message is that “this promotional APR is just another way that Discover helps you stay in control.” Other communications also promote a seven-month introductory period but only for purchases made between January 15 and March 15 in specific categories of spend.

Many card issuers have yet to reveal how they will adapt their marketing campaigns in the post-CARD Act environment. The Discover communications state that any payments above the minimum amount due will be applied to balances with high rates prior to balances with low rates. This suggests that Discover is ahead of the curve in terms of CARD Act compliance.

Discover’s high penetration among the wallets of US cardholders means that a grab for wallet share represents a threat to most other players. Discover cardholders tend to use their cards more and are more satisfied than other cardholders due to the card’s cash-back program and its long history of customer service. This latest campaign builds on Discover’s strong reputation at a time when other issuers are holding back in their marketing and sweepstakes campaigns.

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