BJs Wholesale Club is stepping up their co-branded credit card game by partnering with Alliance Data Systems Corporation and MasterCard.
Current BJs cardholders will be mailed new cards and the entire BJs credit portfolio will transition to MasterCard. Next spring, all cards are scheduled to be converted to ultra-secure chip-enabled EMV credit cards. All cardmembers will receive new cards at that time.
The BJs portfolio will be one of the largest under Alliance Data’s umbrella of cards. The purchase price wasn’t disclosed, but Alliance said it was well within industry norms.
New card can be used anywhere
The new BJs MasterCard can be used anywhere that accepts MasterCard as a form of payment, not just at BJs Wholesale clubs. The card will be a rewards credit card, with greater rewards given for BJs purchases – similar to other co-branded credit cards that can be used anywhere.
Having a chip-enabled MasterCard in their wallets will give cardholders an advantage when traveling abroad, as most of Europe, Canada and Asia has already embraced chip cards. Chip-enabled EMV cards do not use magnetic stripes; they are waved or tapped instead of swiped. The new BJs MasterCard will have both a stripe and a chip, so it can be used at merchants who do not have chip-enabled point-of-sale terminals.
BJs Wholesale headquartered in Massachusetts
BJs is limited to the Eastern United States, with 202 wholesale club stores in 15 states. Its headquarters are in Westborough, Massachusetts. They carry groceries, household products, electronics, office supplies and more – similar to Costco or Sam’s Club.
Many cash rewards credit cards, like Discover, do not offer their standard cash back rewards rate on purchases at wholesale clubs like BJs and Costco. So for frequent customers of these stores, having a store or co-branded credit card that offers rewards is sometimes the best way to increase the value of shopping at the store.
Laura Sen, president and CEO of BJs Wholesale Club, said that the increased security of an EMV card combined with the marketing power of Alliance will position the new credit card as an industry leader. “Leveraging Alliance Data’s skillset in loyalty and marketing as well as MasterCard’s expertise in technology and security, we are confident our new credit card program will provide a value proposition that is unparalleled in the warehouse club channel,” said Sen.
More details about the BJs MasterCard rewards program, incentives, and term and conditions will be available later this year.