American Express Co, which recently gave up a co-branded card venture with retailer Costco, said on Thursday that it has made a new deal with brokerage Charles Schwab Corp to issue cards under both of their names.
The pact is a multi-year agreement to issue two kinds of cards, American Express said in a statement. The company declined to disclose other terms and said details of how the cards will work for customers will be announced closer to the their expected offering early next year.
If the arrangement tracks one that American Express has had with brokerage Morgan Stanley since 2012, the companies will offer both charge cards, which customers would pay off monthly, and credit cards, on which they can carry balances.
Competition among card companies has heated up in recent years as issuers have offered richer rewards to customers for their spending and as retailers and airlines have demanded better terms for access to their customers in co-branded deals.
American Express said in February it was ending a 16-year deal with Costco because it could not reach renewal terms with the retailer that would make "economic sense." The end of the Costco deal has raised questions among investors in American Express stock about how much money the company and its rivals will be able to make with co-branded deals in the future.
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