BJ’s goes with new credit-card issuer

BJ’s Wholesale Club has partnered with bank Capital One which will become the exclusive issuing partner for the 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 the new BJ’s 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 absolute best at what they do, our members win,” Bill Werner, executive vice president of strategy and development at BJ’s, said in a statement. “Capital One’s customer service and digital experience are unmatched in the card space, and we are so excited to pair this first-class offering with the power of Mastercard’s network and an upgraded value proposition as we continue to deliver to our members what we believe is the best program in retail.”

No details on cardholder terms, rewards and benefits were announced. BJ’s said that, over the coming months, it will provide more information on cardholder perks and the process for transitioning to the new card program, which will continue to run exclusively on the Mastercard network.

“We’re proud to enter into a strategic partnership with BJ’s to further accelerate their growth and support their commitment to deliver significant value to their members,” commented Buck Stinson, senior vice president and head of U.S. card partnerships at Capital One. “We look forward to working together to offer BJ’s Mastercard cardmembers unique value and convenience.”

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Co-branded credit cards can be big loyalty builders for retailers. Typically sporting the logos of both the card issuer and the retailer, co-branded cards enable holders to earn discounts, points or other rewards with the merchant, and they can be used for purchases anywhere the cards’ network is accepted. For a retailer like BJ’s, co-branded cards build on an existing package of benefits and perks in its warehouse club membership. Issuers like Capital One, too, bring access to additional payment products and digital capabilities.

Mastercard has supported BJ’s credit-card holders since 2014. “With the addition of Capital One as the exclusive issuing partner for this program, we will be able to further deliver industry-leading everyday rewards and benefits to BJ’s members,” stated Bunita Sawhney, executive vice president of U.S. financial institutions at Mastercard.

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

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BJ’s had announced the co-branded Mastercard 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 in-club and online purchases, 10 cents off per gallon at BJ’s fuel stations, 2% back on dining out and non-BJ’s gas purchases, and 1% back on purchases made elsewhere. The retailer also said the My BJ’s Perks Program was the first in the warehouse club category to provide members the flexibility of on-demand award redemption in $20 increments during checkout in-club.

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