Nordstrom currently offers three different store cards, two are credit cards and the other is a debit card. These cards are issued and maintained by Nordstrom bank, which is a wholly owned subsidiary of Nordstrom, Inc. The best rewards earning card they offer is 2x points on Nordstrom purchases and 1x points on all other purchases and $20 off $100+ on the day that you apply.
Yesterday it was announced that T.D Bank would be purchasing the Nordstrom credit card portfolio from Nordstrom Bank in the United States. T.D Bank is the top credit card issuer in Canada and the 10th largest bank in the United States, they’ve recently been trying to increase their market share in the US with the launch of the Aeroplan credit card. The Nordstrom portfolio has $2.2 billion in receivables.
I doubt the new cards will have significant changes made to the rewards earning structure, so this change shouldn’t effect too many people. That being said it’s interesting to see T.D being so pro-active in the US market, hopefully this signals their intention to compete with the larger credit card issuers in the US (50,000 mile Aeroplan bonus, anyone?).
The deal will close sometime during the second half of 2015 and cardholders will be notified of any changes before they happen.
I just got a “Small balance adjustment” for a low balance. It was under a dollar. I did not expect this. A pleasureable surprise!
“…hopefully this signals their intention to compete with the larger credit card issuers in the US”
It would be great to have a new big player in the CC market here in the US.
I’m curious whether having the Nordstrom card can be a substitute for the requirement of having a prior relationship when applying for one of TD’s cards. This would be good for folks outside TD’s banking footprint.