According to the Wall Street Journal, the BJ’s Wholesale credit card portfolio is switching to Capital One. The change will see Alliance Data Systems, the current card issuer, lose out on the $1.5 billion portfolio after a bitter falling out between the two brands. Here are all the known details:
BJ’s Credit Cards to Be Issued By Capital One: Report
The BJ’s Wholesale Club credit card portfolio is on the move if the Wall Street Journal is to be believed. The publication reports that BJ’s will switch to Capital One when its current deal with Alliance Data Systems ends this year.
BJ’s sued Alliance Data Systems (ADS) in Massachusetts Superior Court last week. The retail giant argued that ADS is intentionally slowing the transition process of moving existing accounts to Capital One. An ADS spokeswoman contested BJ’s claims, stating that “Alliance Data has a 30-year track record of delivering the highest level of service and support to our valued brand partners, including responsibly and with the utmost integrity.”
The BJ’s credit card portfolio loss is a significant blow to Alliance Data. As mentioned, the portfolio – which includes the BJ’s Perks Plus® Mastercard® and the BJ’s Perks Elite® Mastercard® – represent a significant chunk of the ADS credit card collection. All told the account currently features balances of approximately $1.5 billion, according to reports.
Capital One Rebounding from Loss of GM Portfolio
Capital One offers an impressive range of co-branded credit cards – both closed-loop store cards and open-loop cards that bear the Visa or Mastercard payment network. The bank’s most recent co-branded credit cards include the Key Rewards lineup, featuring Visa credit cards for all the brands that make up the Williams Sonoma/ Pottery Barn family.
However, it isn’t all smooth sailing for Capital One’s co-brand portfolio. The company is currently finalizing the transfer of the GM credit card portfolio to Goldman Sachs. That deal, worth $2.5 billion, also saw the My GM Rewards Mastercard launch through Goldman’s Marcus banking brand.
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