JPMorgan Keeps Visa, MasterCard Logos

Tuesday 22 February 2005 20:53 CET | News

JPMorgan Chase & Co., will continue issuing charge cards with both the Visa and MasterCard logos. The company also chose to retain seats on the board of Visa U.S.A. Inc., noting card-association rules prevented it from having directors at MasterCard International Inc. as well. JPMorgan executives left MasterCards board last year.

The decision ended mounting speculation that JPMorgan would drop one of the brands for its credit and debit cards in an effort to lower costs after acquiring Bank One Corp. in a $58 billion stock merger last July. Bank One was the biggest U.S. issuer of Visa cards, while JPMorgan -- reportedly the countrys largest credit-card issuer -- remains the third-largest distributor of MasterCards. While financial terms of the deal were not disclosed, JPMorgan added it still expects to trim about $650 million in expenses from its card business following the merger with Bank One. Credit and debit cards issued by JPMorgan will carry the Chase name, while commercial cards will be marketed under Chase and JPMorgan brands, the company said. Bank One cards and branches will undergo a name change beginning in the first half of this year. In recent months, several banks have quickly landed deals for cobranded American Express cards -- an option made possible last year after a court said Visa and MasterCard could not bar their partners from offering other accounts -- but JPMorgan indicated that an AmEx agreement was not likely.

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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce