Fidelity Investments is ending its long-time credit card partnership with American Express and Bank of America Corp. The 12-year partnership has generated billions of dollars in fees.
Instead, Fidelity has agreed to partner with US Bancorp and Visa, effective Monday. The exclusive alliance will provide Visa branded credit card products to US consumers, including Fidelity customers.
News of the switch arrives shortly after American Express announced that its long-time partnership with warehouse club retailer Costco Wholesale Corp was coming to an end.
Amex shares have plummeted by 25% over the last year.
Since 2003, Fidelity has offered 2% cash back credit cards with American Express and Bank of America’s FIA Card Services. Customers have earned $1.1 billion in cash rewards since the program began.
Customers will be given new cards with chip security technology, and access to digital wallets, including Apple Say, Samsung Pay, and Android Pay
The new card program will issue the Fidelity Rewards Visa Signature Card and the Fidelity Investments 529 College Rewards Visa Signature Card. Customers can earn an unlimited 2% cash back with no annual fees, caps or categories when directing rewards into eligible Fidelity accounts.
US Bank has also has agreed to acquire Fidelity’s existing co-brand credit card portfolio which holds $1.7 billion in associated balances.