Retail brokerage giant Fidelity Investments said today it has partnered with U.S. Bank and Visa in a program that will offer Visa-branded credit cards to U.S. consumers, including Fidelity’s 24 million customers.
The new program ends Fidelity’s 12-year partnership with American Express and Bank of America. The move to Visa amounts to another blow to American Express, which lost its agreement with warehouse club retailer Costco Wholesale last year.
Under the new card program, U.S. Bank will issue the Fidelity Rewards Visa Signature Card and the 529 College Rewards Visa Signature Card. Card members can earn unlimited 2 percent cash back with no annual fees, caps or categories when directing rewards into eligible Fidelity accounts.
Fidelity said the new cards will be issued with chip technology for improved security and give access to the payment industry’s leading digital wallets, including Apple Pay, Samsung Pay and Android Pay.
“Customers using Fidelity’s 2% cash back credit cards have earned more than $1 billion in cash rewards since 2003, demonstrating that the opportunity to use everyday spending to help bolster contributions for longer-term savings and investment goals is too good to ignore,” said Ram Subramaniam, president of Fidelity’s retail brokerage business.
Fidelity says that current cardholders of co-branded products between Fidelity and FIA Card Services may continue to use their card as usual.
Says Fidelity: “FIA Card Services will continue to support the program and may be contacted for any credit card support, including questions on transactions, statements, rewards redemption and payments, just as they do today. Cardholders will begin to receive information from Elan Financial Services—a division of U.S. Bank that will manage the program—in mid-2016.”