Capital One pushed back on criticism of its proposed acquisition of Discover Financial in a letter to regulators last week, insisting that customers won’t see higher prices because it will still face competition.

Opponents of the firm’s planned acquisition of the Riverwoods, Illinois-based Discover say the deal will give the combined company an excuse to charge higher fees to consumers and merchants.

In an Aug. 7 letter to the Federal Reserve submitted last week in response to the merger’s critics, McLean, Virginia-based Capital One said it has incentive to keep prices competitive.

The proposed $35 billion merger, which was announced in February, would create the nation's largest credit card company. Regulators are still considering whether to approve the deal.

Capital One noted that it will still have plenty of competitors for customers to choose from if the merger goes through.

Cap One’s letter doesn’t mention any other companies by name, and a Capital One spokesperson declined to list any, but other major credit card issuers include San Francisco-based Wells Fargo and Stamford, Connecticut-based Synchrony Financial.

"The ease with which consumers can switch between the very large number of options for credit cards or other forms of payment or credit that they have access to, particularly in an industry with so many competitors, makes the credit card industry highly competitive," the letter says. 

This will discourage the combined entity from raising prices, Capital One said.

Opponents of the deal have also sounded off about the impact the merger would have on credit cardholders in low-income households, which tend to have lower credit scores. 

According to an analysis by the advocacy group Americans for Financial Reform, the merger would create a company with more than 30% of the market for consumers with non-prime credit scores, leaving those consumers with fewer options. 

While Capital One's letter did not directly address that criticism, it did say that the company has a history of working with consumers regardless of credit history, and strives for financial inclusiveness. 

"We have a long-standing commitment to improving financial literacy and awareness and provide simple and transparent products to help new-to-credit customers build their credit safely and use it wisely," the letter said