Credit card

BJ’s opts for a new credit card issuer

BJ’s Wholesale Club has partnered with Capital One Bank to become the exclusive issuing partner for BJ’s co-branded Mastercard program.

Plans call for the Capital One co-branded card offering to launch in early 2023, Marlborough, Mass.-based BJ’s said Wednesday. Also with BJ’s new Mastercard program, Capital One has entered into an agreement to acquire the current portfolio of BJ’s credit card accounts.

“When we can deliver incredible value with a partner who is the best at what they do, our members win,” said Bill Werner, executive vice president of strategy and development at BJ’s, in a statement. “Capital One’s customer service and digital experience is unmatched in the card business, and we’re excited to combine this best-in-class offering with the power of Mastercard’s network and enhanced value proposition as we continue to offer our members what we believe is the best program in retail.

No details on terms, rewards and cardholder benefits have been announced. BJ’s said that over the next few months it will provide more information about cardholder benefits and the transition process to the new card program, which will continue to operate exclusively on the Mastercard network.

“We are proud to enter into a strategic partnership with BJ’s to further accelerate their growth and support their commitment to delivering significant value to their members,” commented Buck Stinson, senior vice president and head of US card partnerships at CapitalOne. “We look forward to working together to provide BJ Mastercard cardholders with unique value and convenience.”

Co-branded credit cards can be great loyalty builders for retailers. Typically bearing the logos of the card issuer and retailer, co-branded cards allow cardholders to earn discounts, points or other rewards from the merchant, and can be used for purchases anywhere the network of cards are accepted. For a retailer like BJ’s, co-branded cards build on an existing set of perks and benefits in its warehouse club membership. Issuers like Capital One also offer access to additional payment products and digital capabilities.

Mastercard has been supporting BJ credit cardholders since 2014. “With the addition of Capital One as an exclusive issuing partner for this program, we will be able to offer more cutting-edge daily rewards and benefits to members. from BJ,” said Bunita Sawhney, executive vice president of U.S. Financial Institutions at Mastercard.

By aligning with Capital One, BJ’s is moving away from longtime co-branded credit card partner Alliance Data Systems (ADS). News that ADS had lost BJ’s as a Capital One client appeared in a January Wall Street Journal report. At the time, BJ’s account balances with ADS totaled nearly $1.5 billion, and the wholesale club chain also filed a lawsuit, alleging ADS slowed the transfer of accounts. of existing cards, according to the Journal.

BJ’s had announced the Mastercard co-branded partnership with ADS in November 2014, touting enhanced member benefits for those who signed up. My BJ’s Perks card rewards at the time included 5% cash back on BJ’s online and club purchases, 10 cents off per gallon at BJ’s gas stations, 2% back on restaurants and non-BJ gas purchases, and 1% back on purchases made elsewhere. The retailer also said My BJ’s Perks program is the first in the warehouse club category to offer members the flexibility to redeem on-demand rewards in $20 increments when checking out in club.

Overall, BJ’s now operates 232 clubs and 162 BJ’s Gas locations in 18 states. The company also announced yesterday that it had completed the move to its new headquarters at 350 Campus Dr. in Marlborough, Mass. The retailer’s former headquarters were in Westborough, Mass.