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Amazon tire-kicking for Chase replacement of CC

Horseshoez
Valued Contributor

Re: Amazon tire-kicking for Chase replacement of CC


@ZackAttack wrote:

@TheBoondocks wrote:

I hope AMEX pick up the business, that way they could have a Amazon card on the personal side. If it goes to Synch, I'm going to close the card...


I could not agree more. After all the data points say about Synch shutting down cards, I hope they don't get it.


An Amazon/Synchrony card I think will be one of the few exceptions in the Synchrony portfolio as I believe any such card, assuming it happens, will be pretty much immune to spurrious closures.  Why?  Unlike other store cards where folks may use them on a very intermittant basis, the way in which spending habits have changed, especially since COVID, Amazon gets very frequent spend from a HUGE percentage of the population.  And that's my point, I've skimmed the various Synchrony closure threads, and infrequent usage seems to be the common thread.  How many of us "infrequently" (as in once or less per year) spend money on Amazon?  I can look at literally 100% of the adults I know and say "Not a single one".

I categorically refuse to do AZEO!

Message 61 of 154
FinStar
Moderator

Re: Amazon tire-kicking for Chase replacement of CC


@blindambition wrote:

@FinStar wrote:

Another set of highlights from another recent Bloomberg article including the potential divestiture of the Macy's CC portfolio (paywall):

 

https://www.bloomberg.com/news/articles/2021-06-09/from-amazon-to-gap-retailers-get-their-pick-of-ba...

JPMorgan, AmEx Card Competition Heats Up as Goldman Joins Fray

  • Competition heats up among banks to ink co-brand card deals
  • The market has grown to more than $350 billion a year
 
Delinquencies are at historic lows and consumer spending is accelerating, meaning banks are once again mining their card businesses for growth. That’s led to a ratcheting up in the fight for co-brand and private label credit-card portfolios, with many retailers fielding lucrative bids to replace their existing banks.
 
In some cases, retailers’ existing bank partners have chosen to walk away. Synchrony said it was unable to reach contractual and economic terms with Gap that made sense for the firm’s shareholders when the clothier announced it would shift its portfolio to Barclays Plc in April.
 

Macy’s Inc. this week revealed that its longtime credit-card partner, Citigroup Inc., had informed the retailer it would be terminating their existing card deal after sales dropped below a threshold set out in their original agreement. “The company plans to continue negotiations with Citibank as well as evaluate a potential transfer of its credit-card program to another financial service entity,” Macy’s said in a regulatory filing.

 

JPMorgan is willing to part with the Amazon portfolio, according to people familiar with the matter. The lender already offers a lucrative set of rewards for the partnership, including offering the e-commerce giant’s Prime members 5% cash back on purchases made on its site and at its Whole Foods Market subsidiary. 



Ohhh!, Guess those $25k limits may end soon!! Wonder if that is why an uptick in store card upgrades. Hoping they'll hit contractural threshold again.


While most consumers outside of MF will see it as a non-event, and in the event that Citi and Macy's do not reach a contractual agreement, it's going to be a full on 'madness' for the MF peeps if it ends up going to another lender.  As we all know, nothing lasts forever 😬

Message 62 of 154
Loquat
Moderator

Re: Amazon tire-kicking for Chase replacement of CC

@FinStar I remember the old True Value card that ran on the Discover network.  I remember my first card that ever ran on the Discover network was issued by Direct Merchants and I'm thinking that they were aquired by someone else...maybe CapOne or HSBC.  I could be wrong but I think @UncleB may have had one of these Direct Merchant issued Discover cards?  I'm really showing my age because I think that card went away some 15-20 years ago.

Message 63 of 154
UncleB
Moderator

Re: Amazon tire-kicking for Chase replacement of CC


@Loquat wrote:

@FinStar I remember the old True Value card that ran on the Discover network.  I remember my first card that ever ran on the Discover network was issued by Direct Merchants and I'm thinking that they were aquired by someone else...maybe CapOne or HSBC.  I could be wrong but I think @UncleB may have had one of these Direct Merchant issued Discover cards?  I'm really showing my age because I think that card went away some 15-20 years ago.


Haha, great memory, @Loquat! Smiley Very Happy

 

I did, indeed, have the Direct Merchants "Direct Rewards" Discover card... it had a fantastic $300 credit line, $59 AF, 1% rewards, and never saw a single CLI.  It was underwritten by HSBC, and it went to Capital One the same time my Orchard Bank MasterCard did (2013). I opened it in June 2007... it's still on my credit reports.

 

Since they never budged on a CLI I didn't keep it through the transition, but I still got all the emails and snail-mail... Capital One converted them all to MasterCard (same for the HSBC Amex cards that transitioned).

Message 64 of 154
UncleB
Moderator

Re: Amazon tire-kicking for Chase replacement of CC


@FinStar wrote:

@blindambition wrote:

@FinStar wrote:

Another set of highlights from another recent Bloomberg article including the potential divestiture of the Macy's CC portfolio (paywall):

 

https://www.bloomberg.com/news/articles/2021-06-09/from-amazon-to-gap-retailers-get-their-pick-of-ba...

JPMorgan, AmEx Card Competition Heats Up as Goldman Joins Fray

  • Competition heats up among banks to ink co-brand card deals
  • The market has grown to more than $350 billion a year
 
Delinquencies are at historic lows and consumer spending is accelerating, meaning banks are once again mining their card businesses for growth. That’s led to a ratcheting up in the fight for co-brand and private label credit-card portfolios, with many retailers fielding lucrative bids to replace their existing banks.
 
In some cases, retailers’ existing bank partners have chosen to walk away. Synchrony said it was unable to reach contractual and economic terms with Gap that made sense for the firm’s shareholders when the clothier announced it would shift its portfolio to Barclays Plc in April.
 

Macy’s Inc. this week revealed that its longtime credit-card partner, Citigroup Inc., had informed the retailer it would be terminating their existing card deal after sales dropped below a threshold set out in their original agreement. “The company plans to continue negotiations with Citibank as well as evaluate a potential transfer of its credit-card program to another financial service entity,” Macy’s said in a regulatory filing.

 

JPMorgan is willing to part with the Amazon portfolio, according to people familiar with the matter. The lender already offers a lucrative set of rewards for the partnership, including offering the e-commerce giant’s Prime members 5% cash back on purchases made on its site and at its Whole Foods Market subsidiary. 



Ohhh!, Guess those $25k limits may end soon!! Wonder if that is why an uptick in store card upgrades. Hoping they'll hit contractural threshold again.


While most consumers outside of MF will see it as a non-event, and in the event that Citi and Macy's do not reach a contractual agreement, it's going to be a full on 'madness' for the MF peeps if it ends up going to another lender.  As we all know, nothing lasts forever 😬


At the risk of derailing this thread, I find this very interesting.  🤔  I have "history" with DSNB and I've purposefully avoided applying for Macy's because of that (I've also suspected that same history might be why my two Citi cards both went to review before being approved, but that's just speculation).

 

If Macy's goes to a new lender that could definitely open up possibilities for me, and there are probably others who are bumping up against exposure limits with Citi who might see this as a positive as well.

Message 65 of 154
Loquat
Moderator

Re: Amazon tire-kicking for Chase replacement of CC


@UncleB wrote:

@Loquat wrote:

@FinStar I remember the old True Value card that ran on the Discover network.  I remember my first card that ever ran on the Discover network was issued by Direct Merchants and I'm thinking that they were aquired by someone else...maybe CapOne or HSBC.  I could be wrong but I think @UncleB may have had one of these Direct Merchant issued Discover cards?  I'm really showing my age because I think that card went away some 15-20 years ago.


Haha, great memory, @Loquat! Smiley Very Happy

 

I did, indeed, have the Direct Merchants "Direct Rewards" Discover card... it had a fantastic $300 credit line, $59 AF, 1% rewards, and never saw a single CLI.  It was underwritten by HSBC, and it went to Capital One the same time my Orchard Bank MasterCard did (2013). I opened it in June 2007... it's still on my credit reports.

 

Since they never budged on a CLI I didn't keep it through the transition, but I still got all the emails and snail-mail... Capital One converted them all to MasterCard (same for the HSBC Amex cards that transitioned).


@UncleB Smiley LOL Same here.   My card never saw an increase and if memory serves me right I don't think my limit was much more than what you had.  I remember it was terribly low because I happy to be approved thinking that I would FINALLY be able to rent a car from Enterprise because I had would have a major credit...welp, when Enterprise slaps that $200+ hold on top of the actual cost of the rental, it made my Direct Merchants Discover card absolutely useless.  LOL!  

 

But I had no fear because where Direct Merchants failed me...Providian was happy to step up to the plate and issue me a card with an HUGE $500 limit.  Hahahahaha.  Man, I hated both of them jokers.  LOL!  But Providian did at least give me a enough of a limit to rent a car...for a weekend!  Should I needed to rent for a week that $500 wouldn't have been enough either.  

 

Those were some interesting times in my financial life for sure. 

Message 66 of 154
Anonymous
Not applicable

Re: Amazon tire-kicking for Chase replacement of CC


@Horseshoez wrote:

@ZackAttack wrote:

@TheBoondocks wrote:

I hope AMEX pick up the business, that way they could have a Amazon card on the personal side. If it goes to Synch, I'm going to close the card...


I could not agree more. After all the data points say about Synch shutting down cards, I hope they don't get it.


An Amazon/Synchrony card I think will be one of the few exceptions in the Synchrony portfolio as I believe any such card, assuming it happens, will be pretty much immune to spurrious closures.  Why?  Unlike other store cards where folks may use them on a very intermittant basis, the way in which spending habits have changed, especially since COVID, Amazon gets very frequent spend from a HUGE percentage of the population.  And that's my point, I've skimmed the various Synchrony closure threads, and infrequent usage seems to be the common thread.  How many of us "infrequently" (as in once or less per year) spend money on Amazon?  I can look at literally 100% of the adults I know and say "Not a single one".


There have been plenty of people who had all of their cards closed including Amazon. When Sync comes for you with the sickle, only a few have managed to have a card or two survive. 

Message 67 of 154
FinStar
Moderator

Re: Amazon tire-kicking for Chase replacement of CC


@Horseshoez wrote:

@ZackAttack wrote:

@TheBoondocks wrote:

I hope AMEX pick up the business, that way they could have a Amazon card on the personal side. If it goes to Synch, I'm going to close the card...


I could not agree more. After all the data points say about Synch shutting down cards, I hope they don't get it.


An Amazon/Synchrony card I think will be one of the few exceptions in the Synchrony portfolio as I believe any such card, assuming it happens, will be pretty much immune to spurrious closures.  Why?  Unlike other store cards where folks may use them on a very intermittant basis, the way in which spending habits have changed, especially since COVID, Amazon gets very frequent spend from a HUGE percentage of the population.  And that's my point, I've skimmed the various Synchrony closure threads, and infrequent usage seems to be the common thread.  How many of us "infrequently" (as in once or less per year) spend money on Amazon?  I can look at literally 100% of the adults I know and say "Not a single one".


As mentioned upthread, there are other boards (besides MF) + the Amazon site, for example -- plenty of [SYNCB] Amazon closures cited since last year.  So, no SYNCB hasn't been making any exceptions when they go all out on AA (aside from CLDs due to inactivity).  Also, a variety of members who posted massive closures didn't list their specific cards, most of the posts listed aggregate exposure with SYNCB.  Plus, not every individual who may have experienced AA will post on the boards.

Message 68 of 154
rgd51
Frequent Contributor

Chase and amazon cutting ties?

I saw an article saying that the Amazon card may no longer be through chase and that it could go to Amex or synchrony. Does anyone know anything about this?

Message 69 of 154
Overmedicated
Community Leader
Valued Contributor

Re: Chase and amazon cutting ties?


@rgd51 wrote:

I saw an article saying that the Amazon card may no longer be through chase and that it could go to Amex or synchrony. Does anyone know anything about this?


Already being discussed

https://ficoforums.myfico.com/t5/Credit-in-the-News/Amazon-tire-kicking-for-Chase-replacement-of-CC/... 

FICO 8
Message 70 of 154
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