American Express Announces Charles Schwab Co-Branded Cards

Mike Randall • June 26, 2015

On March 19, 2015, American Express announced the expected release of two new, co-branded premium cards as part of a multi-year agreement with Charles Schwab & Co. Inc.

According to president of Consumer Products and Services for American Express, Josh Silverman, the partnership will cultivate economic benefits over time for shareholders. This will allow customers the companies share in common to “benefit from a relationship with two leading financial services brands,” says Silverman.

Perfectly-Timed Partnership

“We look forward to working closely with Charles Schwab to develop a strong value proposition for the new cards,” Josh Silverman said.

American Express has had a rough start to 2015, starting with raising the annual rates of more than 1 million cardholders. That, coupled with a restructuring plan that laid of 4,000 employees resulted in the company’s stock dropping 13 percent.

In the month prior to the announcement of the Charles Schwab agreement, AmEx had recently suffered severed ties with Costco stores in the U.S. after a 16-year partnership. A week following that loss, JetBlue Airways announced their upcoming switch from AmEx to MasterCard and Barclays as credit card providers.

This co-branding relationship couldn’t come at a more needed time for American Express.

The deal has been finalized, but little details have been released about the new cards. Some analysts speculate that one of the cards may be a credit card and the other a charge card. The release date of the cards, however, is expected to be in early 2016.

Source: BusinessWire

Photo sources: JB Reed/Bloomberg News, aspeninstitute.org

Editorial Note: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

About the Author

Mike Randall

Mike Randall is most knowledgeable in the areas of credit scores and credit cards, having written on those topics and others for the past eight years. He graduated from California State University with a degree in English literature, and he has an extensive background in personal finance studies. When he's not keeping readers informed of changes in the subprime market, Mike’s hobbies include sailing and gourmet cooking. Connect with Mike on Google+.