MONTREAL – Best Buy Canada is moving its private-label credit card portfolio to Desjardins Group, ending a longtime relationship with Chase Bank.
The electronics retailer sent notices to Chase cardholders this week saying their co-branded Best Buy Reward Zone Visa would deactivate at the end of February.
The changes come after Best Buy announced a new partnership with Desjardins that will take effect on April 15.
Under the agreement, the Quebec-based financial institution will acquire the private-label credit card portfolios under the brands of Best Buy and its sister company Future Shop.
Financial terms, and the value of the portfolio, were not disclosed.
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Meanwhile, Best Buy urged customers to continue earning points as Best Buy RewardZone members by shopping online and in-store.
The company did not say whether it planned to launch a new Visa-branded credit card with another provider.
Private-label cards are designed to be accepted only at a specific retailer and are particularly common with department stores and electronics chains.
“We have no doubt that our financing solutions will further set Best Buy Canada apart in a highly competitive industry,” Andre Chatelain, general manager of Desjardins card and payment services, said in a release.
Co-branded credit cards have been a hot commodity for years, with a growing array of options on the market, including the Scotiabank (TSX:BNS) Scene card, a partnership with Cineplex (TSX:CGX); and the Tim Hortons loyalty credit card, which is operated by CIBC (TSX:CM).
Best Buy Canada launched its Rewards Zone Visa card with Chase Canada in 2008, giving customers points for every dollar spent, and extra points when they shopped at Best Buy stores.
The points could be cashed in for Best Buy rewards certificates that were redeemable for in-store purchases.
Chase launched private-label Best Buy and Future Shop cards the following year.
“We pride ourselves on creating an unparalleled shopping experience in-store and online, and we’re thrilled to partner with Desjardins to offer their competitive financing solutions to our customers,” said Philippe Arrata, senior vice-president for Best Buy Canada.
Last year, Best Buy’s U.S. private label and co-branded credit card portfolio was bought by Citigroup from Capital One Financial.
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