Giant VISA Dies (9/1/99)
FULL STORY:
One of the best supermarket credit cards around is being laid to rest this
month. After floundering among three issuers the 'Giant Food VISA' card will
finally rest in peace by the end of September. The mid-Atlantic grocery chain
announced this week that its co-branded credit card program is closing down
for good. Giant says First USA, the card's current issuer, made the decision,
earlier this summer, to terminate the popular program. First USA is notifying
cardholders this week and offering to switch them to other First USA cards.
The card has a colorful history. Buffalo, NY-based M&T Bank launched the
program in early 1996, offering cardholders an unlimited 3% rebate on Giant Food
purchases and an unlimited 1% rebate on other purchases. By October of 1996 M&T
wanted to terminate the program after realizing heavy losses, in excess of $1 million
per month. By the end of 1996 Giant and M&T ended up fighting in federal court
over the program. By February of 1997 Chevy Chase Bank took over and re-launched
the program, capping annual rewards and increasing the basic card pricing. Chevy
Chase was later acquired by First USA, which further reduced the rebates to a
maximum of 1%. Giant said yesterday it will mail out final rebate certificates
to cardholders in October and November. For more information visit a Giant
Food store in your area.