U.S. Bancorp Acquires $700M Credit Card Portfolio
Minneapolis-based U.S. Bancorp on Wednesday announced that its Elan Financial Services unit has acquired the credit card assets of 28 financial institutions.
The assets-which include about $700 million in outstanding credit card balances-were acquired from Wilmington, Delaware-based FIA Card Services, N.A., a subsidiary of Bank of America. Financial terms of the deal were not disclosed.
The acquired portfolio includes cards that financial services firm Edward Jones offered to its clients. U.S. Bancorp said that, under the terms of the deal, Elan will own the credit card assets but will continue to brand and market the cards under the names of their respective financial institutions.
“This portfolio of financial institutions represents a significant opportunity for Elan,” Pamela Joseph, vice chair of U.S. Bancorp Payment Services, said in a statement. “They are highly regarded financial service partners to millions of Americans, and we share their commitment to adding high-quality financial services for their clients that can help them achieve their goals.”
Elan provides credit card processing and payments services, as well as ATM and debit card processing. U.S. Bancorp, which had $284 billion in assets as of the end of 2010, is Minnesota's largest bank holding company.
According to a report by the Star Tribune, Bank of America is looking to exit the business of supporting and marketing credit cards issued by other institutions. U.S. Bancorp, meanwhile, has reportedly made more than 300 card acquisitions during the past six years.