American Express and Wells Fargo Teaming Up To Launch New Credit Cards
When it comes to rewards credit cards, I believe that the more competition- the better. With more players in the marketplace competing for the same crowd of creditworthy consumers, we've seen sign-up bonuses and promotions increase drastically over the last 5 years. There could be another player in the mix soon: Wells Fargo. This week American Express and Wells Fargo announced that they would be launching a partnership to bring Amex credit cards to Wells Fargo's 70 million customers.
Wells Fargo is the nation's fourth largest bank in terms of assets with the largest branch network in the US. However, although the bank is the country's seventh-largest issuer of general-purpose credit cards in the country, only one third of its customers carry a Wells Fargo credit card. Although Wells Fargo currently has a relationship with issuer Visa that is still in place, the bank and American Express both sensed a huge opportunity to issue Amex's line of credit cards to Wells Fargo's enormous customer base.
Wells Fargo plans to make the new cards available nationwide by mid-2014 although they also announced they would be launching a targeted pilot program in select US markets later this year.
Customer loyalty and credit card benefits are part of the motivation behind the deal, according to the head of Wells Fargo's Consumer Lending Group, Avid Modjtabai, who said, "We want to give the customers who already carry our card – and the ones who don't yet – greater rewards and benefits for having a Wells Fargo card in their wallets."
Although Wells Fargo currently has a rewards program that includes options to redeem points for cash back, gift cards, merchandise and travel experiences as well as an online shopping portal with bonus earning opportunities, it looks like LoyaltyEdge and Amex will be helping to design a new, more sophisticated Wells Fargo loyalty program where rewards will include merchandise and gift cards. There was no specifc mention of travel rewards or airline or hotel partners, but I'd love to see them create a new transferable points program or at least team up with travel brands that don't currently have a travel cobranded card, like Four Seasons or Kimpton.
Based on the information available, I suspect we'll see a suite of cards and a fixed-value rewards program that looks a lot like Capital One Venture Rewards or Bank of America World Points where you earn a set number of points or miles per dollar and then can redeem them at rates of 0.5-1 cent apiece for cash back, merchandise or gift cards, and potentially for statement credits for travel, though that wasn't specifically mentioned in any of the announcement information.
For more information see these posts:
Maximize Monday: Fixed-Value Rewards Programs
Ranking the Top Fixed-Value Points Programs
While I'd be more excited to see some of the new Wells Fargo cards offering co-branding opportunities with hotels and airlines, or even transferability to travel partners, at least this is a step in the right direction for Wells Fargo and will create more opportunities to earn and redeem points for its huge roster of customers.
[card card-name='Barclaycard Arrival™ World MasterCard®' card-id='22089566' type='javascript' bullet-id='1']
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
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- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.