Best Buy Replaces MasterCard with Visa for Branded Credit Cards
Best Buy is switching to a new credit card processor in 2015, choosing Visa over MasterCard to handle its co-branded card. Citigroup will remain the card-issuing bank, but Visa will become the processor at the beginning of the year.
Reports about the switch come from two insiders at Best Buy who have asked to remain anonymous until the company makes the deal public. Visa’s Chief Executive Officer Charles W. Scharf said in late October that an unnamed company, now believed to be Best Buy, had “agreed to terms to move a significant consumer credit co-brand from a competitor to Visa.”
This shift should not have a major impact on consumers, other than the customer support team backing the card. There are no reports at this time about any adjustments in fees as a result of the switch.
Best Buy started its rewards credit card program in 2006, but it did not begin working with Citigroup until last year. Prior to that, Best Buy worked with several other banks, including Purchase, HSBC Holdings and Capital One.
Best Buy and MasterCard have both declined to make official statements about the move at this time.