WSJ is reporting that GAP will change credit card issuers for it’s private label and co-branded credit cards for brands such as Athleta, Banana Republic and Old Navy. The existing issuer is Synchrony and the new card issuer will be Barclays. Synchrony has previously held this relationship for approximately 22 years.
The changeover is expected to happen sometime around April 2022 when the existing contract ends and Synchrony is expected to earn $1 billion from the sale. As part of the sale Barclays has purchased the backbook meaning that existing cardholders will be brought over to Barclays in the sale.
Unfortunately it’s probably bad news for all of the spending offers we regularly see on these cards, as previously 80% of the card programs cost was incurred by GAP.
Hat tip to reader John L
View Comments (24)
This is happening mid-June. With Synchrony to Barclay and Visa to MC conversion this will most certainly look like a new account and take a 5/24 spot. I canceled the card yesterday via automated system without even talking to anyone. Will miss my beloved BR card with great grocery store promotions that landed my family a whole bunch of BR, Hill City, Athleta and GAP clothes at fraction of the price.
Got an email today about upcoming changes- the biggest devaluation is that Luxe/Silver, etc cardmembers currently have free shipping on any purchase, but starting late July, there will be a $50 minimum
Can you fwd me the e-mail? will@doctorofcredit.com
Hey Doc, don’t know if this is related but I got the following account changes in an email today. Sucks to be me with a birthday after July.
“Effective June 1, 2021, your Gap Inc. Visa® Signature Card will no longer receive the following birthday benefits:
Earn 3x for every dollar spent outside our brands during your birthday month.
Earn 15x for every dollar spent at our brands during your birthday month.
All other card benefits will remain in place.
Stay tuned for new benefits to be announced for your Gap Inc. Visa® Signature Card in July 2021.
Have a birthday in June or July, don’t worry, we will have a belated birthday surprise for you in August 2021”
I just got a push notification for a 12% CB offer for Gap on Google Pay.
Now I’m really glad I never went for an Old Navy card. Synchrony gets so much hate but I think Barclays is so much worse.
From trash company to another trash company.
hopefully it does not take a 5/24 slot...
Good question- what’s been peoples experience when other portfolios were taken over? Costco?
This explains the offers we received on our ON cards to encourage spending. I was happy to oblige, earning $125 on $1500 of spend.
That’s a whole lotta schmeckles
Spending ON Cash Rewards pretty much accounts for my entire annual clothing budget. De-valuation, bonus changes, etc. will really hurt.