Alliance Data System Corp.
is losing one of his biggest credit card accounts:
The members-only wholesale club is transferring its co-branded credit cards to
According to people familiar with the matter, Financial Corp.
The move is a huge blow to ADS, which specializes in store credit cards. BJ’s is one of the highest-rated credit card partners, accounting for about $1.5 billion of the balance, according to people familiar with the matter. ADS had an average balance of $15.5 billion in the third quarter, according to the company.
BJ’s on Tuesday sued ADS in the Massachusetts Superior Court, alleging that the company was slowing the process of transferring existing card accounts. Capital One’s name is excluded from the lawsuit.
An ADS spokesman said the allegations in the lawsuit were incorrect. “Alliance Data has a 30-year track record of providing the highest level of service and support to our valued brand partners, including operating responsibly and with the highest integrity,” she said. . “We believe we are fully complying with the terms of our contractual agreement.”
According to the lawsuit, more than a million members of BJ have one of these cards. According to the lawsuit, BJ’s contract with ADS will expire this year. In court papers, BJ’s said the delay was related in part to ADS’s transformation of its existing technology platform, which stores card account information including balances and cycle dates and demographics.
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Appears January 19, 2022, print edition as ‘BJ’s to Shift Cards to Capital One.’
https://www.wsj.com/articles/bjs-wholesale-club-to-move-credit-cards-to-capital-one-dealing-blow-to-ads-11642540249?mod=pls_whats_news_us_business_f BJ’s Wholesale Club to transfer credit card to Capital One, discount to ADS