RIVERWOODS, Ill. – Discover Financial Services Chief Executive David Nelms announced last week that the company will spend more than $35 million next year for new credit cards that contain a computer chip to better combat fraud.

That amount includes the cost of issuing new cards to customer, as well as efforts needed to prepare Discover's card-processing network for the card. Discover is just one of many U.S. card companies racing to issue the new chip cards, which are more difficult to counterfeit than traditional magnetic stripe cards.

Nelms also said that the company will spend more than $75 million next year to meet regulatory requirements on anti-money-laundering programs and to comply with the Bank Secrecy Act. In June, Discover reached an agreement with the Federal Deposit Insurance Corp. to enhance its procedures to prevent money laundering and adopt a revised compliance program for the Bank Secrecy Act.