BJ’s new loyalty program co-branded with Capital One starts Feb. 27

BJ’s Wholesale Club, which selected Capital One Financial as the issuer of the wholesaler’s co-branded Mastercard, will launch its new cards on Feb. 27, Capital One said in a statement on Wednesday.

Shoppers can choose from two options for their credit card choices—BJ’s One or BJ’s One. The BJ's One  Mastercard gives 5% back in rewards, 15 cents off per gallon at BJ’s Gas as well as out-of-club earnings of 2%. The other option for shoppers is the BJ’s One Mastercard, which gives 3% back in rewards, 10 cents off per gallon at BJ’s Gas and 1.5% out-of-club earnings.

"We are always striving to be best in class when it comes to the value of our membership," said Bill Werner, executive VP  of strategy and development at BJ's Wholesale Club, in a statement. "Our partnership with Capital One and Mastercard will deliver unmatched rewards to our members with an exceptional customer service experience. Put simply, we expect this new program will be the best program in the retail space."

Looking to make reward redemption easier, BJ’s card members will now be able to redeem their entire rewards balance once it reaches $10, up to the transaction total with no rewards expiration.

"With this new program, we partnered closely to offer BJ's members the opportunity to reap even more value from their everyday purchases at BJ's and elsewhere," said Buck Stinson, senior VP, head of U.S. card partnerships at Capital One, in a statement. "We know the benefits and rewards from this program will help them get the most out of their membership."

For business members, BJ's Business Elite Mastercard features the same offerings and perks of the BJ’s One Mastercard.

The wholesaler also announced it has rebranded its membership program from BJ's Perks Rewards to The Club Card Membership, which will give members 5 cents off per gallon at BJ’s Gas when they scan their card at the BJ's Gas pump.

"We are proud to be able to provide our members with incredible value and benefits every day, and we believe that the launch of these new membership benefits will only enhance the value we offer our members," said Tim Morningstar, executive VP chief membership officer of BJ's Wholesale Club, in a statement.

As retailers continue to offer financial services for their members, consumers are seeking all options to help fund necessities, including groceries. In fact, 32% of consumers are looking for ways to finance their purchases and delay payments, according to media company Vericast.

The number of BJ's cardholders has grown 10 times since the program was initially launched in 2014, CEO and President Robert Eddy told analysts in November, according to a transcript from financial services site Sentieo. What's more, those cardholders remain more loyal to BJ's than those without the card, Eddy said. Alliance Data Systems was the retailer's previous co-branded credit card partner.

"Our data shows that members with our co-branded card have profoundly better lifetime values, driven by renewal rates well above the chain average," he said. 

BJ’s Wholesale Club operates 235 stores across 18 states.