Posted by Chuck on January 3, 2016
Credit Cards

Published on January 3rd, 2016 | by Chuck

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Fidelity to Drop Amex, BofA and Transition to Visa, US Bank

Update: The new card is now available, our review of the new card can be found by clicking here.

Boston Globe is reporting that Fidelity is dropping American Express and Fia Card Services, a subsidiary of Bank or America, and transitioning all cards to Visa with US Bank backing the cards. All cards will be transitioned over by July 1. This is based on information heard from Ram Subramaniam, president of Fidelity’s retail brokerage business.

We reported that Fidelity is no longer accepting new applicants on any of their cards for the past week and promises a new card launch tomorrow. It wasn’t clear if the card would still be backed by BofA and if it would be Amex or Visa or both (currently, there is one Visa and one Amex). This report confirms that it will be Visa only, backed by US Bank.

This is terrible news for the pajama money of earning $240 per year by loading Serve with the Fidelity Amex. We had been expecting that to last a while longer at the least, but the report indicates that it will be switching over to Visa only by July 1. Other options for loading Serve include BBVA or Wells Fargo Amex cards for the $12 per month, among a bunch of others, see List Of Third Party American Express Credit Cards.

The good news is that the card will continue to earn 2% on all purchases and have no annual fee. This will give us another straightforward no-annual-fee 2% credit card, along with Citi Double Cash.

We should find out more tomorrow.

HT: TWAforever on Flyertalk



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William Charles

Another interesting tidbit from that Boston Globe article:

Bank of America said the decision to part ways with Fidelity was mutual. The bank has been withdrawing from cobranding relationships with other financial institutions, since it offers limited opportunities for Bank of America to sell other products to those customers and expand its business, a spokeswoman for the Charlotte-based bank said.

BofA also have co-branded relationships with Alaska, Amtrak (which was recently added so can’t believe that they are serious about all co-brands), Virgin Atlantic, Asiana, Spirit.

I assume they were more talking about their college partners and cards like the Susan G Komen card though.

Glt
Glt

I’d assume it’s pretty specific to financial institutions rather than college partners. That card steers clients towards fidelity for investment advice rather than Merrill Lynch.

William Charles

Totally missed the bit where it said other financial institutions. Thought it just said co-branded partners. That certainly makes more sense.

Harlan V.

SAD! 🙁 I’ll miss it as an AMEX. I have US Bank adds more promotions to the card, though.

harvson3
harvson3

Don’t you all come jumping on the Flexperks bandwagon! Don’t want it to break an axle or come to a halt due to the extra weight of new pajama earners.

Justin H.
Justin H.

Best Case scenario: The new Visas is just a straight 2% CB card that’s only slightly better than the rest of the current field / easier redemption methods.

Worst Case scenario: The new Visa is a tiered 2% CB card, similar to the current FIA Visa.

The loss of debit billpay, Amex Offers, and Serve loads definitely stings though. Flexperks, here I come!

AB
AB

NBA can give you 8 serve loads at 5%, so the annual is $184 plus whatever bonuses, i.e. the $50 here and there you earn. All in all losing Fido isn’t that big a deal

ABC
ABC

How do you arrive at 8?

Rob
Rob

5 during Nba finals, 3 during all star weekend

Dan
Dan

Better question is how do you arrive at $184 … if you get 8 loads at $200 each, that is $1600. 5% of that is $80.

Justin H.
Justin H.

$80 for 8 loads ($1600).
$104 for the remaining 52 loads ($10400) at 1% CB.

joseph
joseph

We can forsee that US bank will implement limits on CB or something else. They are not the most friendly bank to Manufactured spending. There goes to gravy train

M
M

Why are people switching to Flexperks as a result of this change?

William Charles

Just for Serve loads I imagine.

Matt
Matt

It makes sense, however, I have very little use for Flexperks. The loss of straight cash rewards is a bummer.

Shaun
Shaun

Well, FIA/BoA and I don’t get along, I have a local credit union Amex for Serve loads. Looks like this all good news for me.

Daniel
Daniel

When I log into my Fidelity Brokerage account, the below message pops up. There’s also an FAQ: https://www.fidelity.com/cash-management/cardmember-faqs

Fidelity recently launched a new credit card program with Elan Financial Services (Elan) and Visa® as the program’s exclusive network. We selected Elan for their experience in financial services, their innovation, and their commitment to customer service. With Visa, members enjoy the strength, recognition, and acceptance of the Visa brand.
Next Step
What does this mean to you? For now, nothing is changing. You may continue to use your card as usual and enjoy all the associated benefits. Just like today, you can contact FIA Card Services using the number on the back of your card for any help with or questions on transactions, statements, rewards redemption, and payments.

Information will be sent to you in mid-2016 regarding your new Fidelity® Visa Signature® card issued by Elan.

Sam

Two pages from “Elan Financial Services” are:

http://www.elanfinancialservices.com/credit-card/products.php This page outlines the

and

http://www.mybonusrewardscard.com/credit/chooseRewards.do

If these are the points the new card earns this would be a slight downgrade. $325 in airfare for 25,000 points.

William Charles

Good find, Milenomics. Let’s hope this is the case.

Jeff
Jeff

Finally, there are “Your new card is coming.” mailers coming about the change of processors. They are identical on the outside.
BUT
One mailing confirms the 2% cashback rebate rate.
The almost identical mailing fails to mention the cashback rebate rate. It just says there will be one.

Jeff
Jeff

NEW SNAIL MAIL:
I received new snail mail about the Fidelity Investment branded card. It SPECIFICALLY CONFIRMS the existing Fidelity Visa will continue with the 1.5% rewards points up to $15000.00 spending. Separate mail received, the Fidelity AMEX card will become a 2% rewards Signature Visa.

NOTE: Any payments sent to arrive Ju;y 22 or after are to be sent to a DIFFERENT snail mail address. READ the smail mail notice FULLY.

One page says promotional terms will remain in force. Another page says terms change effective July 22 to the new terms listed which may or may not be the same as now in effect.

I will be reading very carefully any new billings for my cards because I have 0% APRs on both of them.

trackback

[…] spend and then 2% thereafter) when the card was issued by FIA card services (Bank of America). When Elan services (U.S. Bank) announced that they would be taking over this card portfolio they also announced that only a Visa card would be issued and this card would earn 2% cash back on […]

trackback

[…] past January, Fidelity announced they would be switching their cards from FIA Card Services (which is part of Bank of America) to Elan Financial Services (which is part […]

Jayson Tripp
Jayson Tripp

Has anybody tried to see if they can pay their fidelity credit card right at a US Bank with a money order? I’ve done other US bank cards, but this is an Elan card. Just wondering if it would work before I tried it.
Thanks

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