After a rocky road with prior credit card partnerships, Charles Schwab is setting its hopes on a new co-brand relationship with American Express. The two companies inked a multi-year deal to issue two new premium co-branded cards, presumably a charge card and a credit card in early 2016.
The new deal comes on the heels of the loss of the 16-year old Costco co-branded credit card program by American Express (10% of its US portfolio) which will end April 1, 2016. AmEx and Costco could not come to terms for a renewal of the exclusive card relationship. Citibank has since inked Costco to take over the program next year.
Meanwhile, Schwab with FIA previously issued the Schwab Invest First Visa and later the FIA Cash Rewards Visa which offered a 2% cash back feature. The program was ditched in 2011 and taken over by Bank of America which introduced the Bank Americard Privileges and the Bank Americard 1-2-3 Cash Rewards, according to CardTrak.
American Express currently issues the successful Fidelity Investments card and the Morgan Stanley card and as such has great experience with investor-type cardholders. Furthermore, past surveys show the AmEx card brand is highly preferred by investors.
AmEx says more details on the new Schwab cards is forthcoming.
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