BJ’s, Alliance Team on Branded Mastercard

BJ's Wholesale Club and Alliance Data Systems Corp., a global provider of data-driven marketing and loyalty solutions, have signed a long-term agreement under which Alliance will provide co-brand credit card services for BJ’s. In spring 2015, the entire BJ's credit portfolio will change over to chip-enabled MasterCard credit cards.

"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 Laura Sen, president and CEO of Westborough, Mass.-based BJ's, which operates 202 clubs and 114 gas stations in 15 eastern states.

Added Melisa Miller, president of Columbus, Ohio-based Alliance Data Retail Services, the program would offer "a new and improved value proposition to cardholders, as well as increased marketing channel access that will help BJ's increase its market share, using its vast knowledge of its customers' in-store behavior and Alliance Data's insights into out-of-store purchasing habits."

Alliance Data plans to introduce a marketing- and insights-driven co-brand credit card program customized for BJ's this autumn. The provider will purchase the warehouse club chain's existing portfolio of co-brand credit card accounts, enabling a smooth transition to current BJ's cardholders. The portfolio size will make it one of Alliance Data's largest.

Details of the purchase price weren't disclosed, except that Alliance Data noted that it was well within industry norms.

Observing that BJ's would now have not only "an enhanced rewards platform, but also a more secure solution for its cardholders," Chris McWilton, president North America at Purchase, N.Y.-based MasterCard, said, "This move puts them at the forefront of the shift to chip cards here in the U.S. and clearly demonstrates their commitment to delivering value to their members."