Synchrony has also reached an agreement with the retailer’s parent company, Walmart, on the sale of the company’s loan portfolio, which is currently serviced by Synchrony. The portfolio is expected to transfer later this year.
In addition, Walmart has agreed to dismiss its lawsuit against Synchrony. Late last year, Walmart accused Synchrony of breach of contract and was seeking no less than $800 million in damages.
“We are very pleased to have reached these agreements. Obtaining certainty around the Walmart portfolio and a renewal on Sam’s Club is a great outcome for the company,” Margaret Keane, president and chief executive officer of Synchrony, said in a press release. “Sam’s Club is a valued and longstanding partner. We look forward to continuing to deliver innovative products and excellent customer service to Sam’s Club members.”
The Synchrony and Sam’s Club partnership began in 1993 with credit programs for business members. The two then added revolving credit programs for Sam’s Club consumer members in 1995, and currently offer Sam’s Club co-branded and private-label credit card programs for Club and Plus members, which all double as membership cards.
Cardholders enjoy benefits including a comprehensive cash back rewards program (5 percent on gas, 3 percent on dining and travel, 1 percent everywhere else) for the co-branded card, no annual fee, in-club cash access, online account management, one card convenience, mobile payment capabilities, special financing promotions and savings opportunities.
“This extension is the latest in a series of renewals and key customer initiatives which highlight the strength of our best-in-class marketing and technology capabilities,” Keane said in the press release. “We continue to build momentum as we provide credit and payment solutions that deliver value to our partners and pursue opportunities that enhance value for Synchrony.”