Nordstrom sells credit card portfolio to TD Bank Group
Nordstrom agreed to sell its existing U.S. Visa and private label consumer credit card portfolio to TD Bank Group. TD Bank also signed an agreement with Nordstrom to become the exclusive U.S. issuer of Nordstrom Visa and private label credit cards in the U.S.
Nordstrom customers will not experience big changes because Nordstrom will continue to manage customer service for the cards. The retailer will also continue to fund and manage the Nordstrom Rewards loyalty program, Nordstrom debit cards, and Nordstrom employee accounts. The terms of retailer’s loyalty program will remain unchanged as well.
The process started a year ago and expected to come to an end in the second half of 2015. For Nordstrom it means getting out of business of financing its customers in order to focus on online business, stores renovation and expansion of its discount franchise. As for TD, this great partnership and collaboration will boost the growth of their North American credit card business.
This is the second U.S. card deal for TD Bank. Earlier, in 2013, it acquired the credit-card balances from Target Corp.