Elan (Fidelity/CU/small bank cards) to be sold

[pdxmike]

https://www.bankingtech.com/2018/08/us-bank-to-sell-card-processor-elan/

U.S. Bank owns Elan, which services cards for Fidelity, including the popular 2% cash back card, as well as cards for over 1,800 credit unions and small-to-mid-sized banks. But now they're selling Elan, with Finastra, FIS or Fiserv being the most likely winning bidders, all of which provide back-end financial services for banks, credit unions and other companies.

When BOA's FIA got shut down, Fidelity was able to keep the 2% cash back card when it switched from FIA to Elan, so hopefully it will remain with this switch.

The sale may be marginally good news for anyone with both U.S. Bank and Elan cards, since I've seen a report of someone having their Elan card closed when their U.S. Bank account got shut down, and U.S. Bank may also factor in Elan cards when calculating the maximum total credit they'll extend to someone. It may be marginally bad news for anyone who already has a card serviced by the winning bidder, for similar reasons.

[gdale6]

Lovely, am tired of all the churning on banks ends.

[Thomas_Thumb]

Not again!

The way my Fidelity Visa and BB cards are bouncing between service providers suggests all financial instutions might one day have my personal info. Perhaps I should apply for 20 or 30 cards and get it over with.

[Anonymous]

pdxmike ... I am stunned! Wonder what this means for US Bank and it's own credit cards? Yikes!

[Revelate]

They were always going to have different cost and revenue structures Dinosaur, so probably nothing.

Partial lender portfolios get swapped all the time, this is just the latest transaction... the only curiosity to me is the timing, but I don't think US Bank has much exposure to Turkey or the countries that export there.

[SouthJamaica]

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@Thomas_Thumb wrote:

Not again!

The way my Fidelity Visa and BB cards are bouncing between service providers suggests all financial instutions might one day have my personal info. Perhaps I should apply for 20 or 30 cards and get it over with.

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In this age of credit card receivable securitization, you're worried about that?

[Thomas_Thumb]

Doom is upon us all.

[Anonymous]

This could be good news as I was denied for a PLOC from US Bank but have $20k in credit lines open through the reserve line, a credit card, and the fidelity card. Maybe once my Fidelity card is moved I can qualify for the PLOC.

[minski]

If Elan is bought by another company, does that company have an agreement with Fidelity to continue issuing Fidelity cards? Or will all the Fidelity Visa cards be disassociated with Fidelity and we have a new log in to add to our list? Or is this the question of the day? Just curious because I'd been thinking of canceling my card but may wait and see what the change might bring. 

[Anonymous]

Thanks for sharing, very interesting. I am not a current IS Bank customer or product holder. However, I do have a Fidelity brokerage account and have considered the Fidelity Visa 2% Cash Back Card at some point in the future. I’ll be interested to see how this plays out since I’ve got plenty of time to observe while I wait for a mortgage and going sub 5/24 for another Chase product.