Capital One Wins Kohl's Credit Card Business from Chase

Published on:
11 April 2011 at 08:59 a.m. ET

http://www.insidearm.com/news/00008601-capital-one-wins-kohls-credit-card-busine/

Kohl’s Department Stores will transfer some 20 million private label credit card accounts to Capital One Financial in a deal announced over the weekend, according to The Washington Post.

Capital One won the card management business from incumbent J.P. Morgan Chase. Capital One will issue and service Kohl’s branded cards to the store’s customers.

Private label credit card issuance has been a major growth market for large card-issuing banks over the past decade, but the deal is the first of its kind for Capital One in the United States.

The agreement calls for Capital One to back all Kohl’s private label cards for seven years. Neither party disclosed financial terms of the deal, but Cap One CFO Gary Perlin said on an earnings call in January that the Kohl’s card operation included “a $3 billion to $4 billion portfolio.”

Capital One Wins Kohl's Credit Card Business from Chase

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