In its first cobranding deal, Bank of New York on Thursday officially launched a Toys R Us Visa card offering travel rewards and rebates on the giant retailer's merchandise.
With mascot Geoffrey the giraffe displaying a colorful billboard of the card, executives disclosed details of the program at a press conference held in a New York City outlet.
Cardholders get a 3% rebate at Toys R Us or Kids R Us locations, 1% back on general purchases, plus a gift certificate of $10 upon approval. The rebates are accrued in Geoffrey Dollar Rebates, which show up on the cardholder's statement in $10 increments and can be redeemed monthly. There is no cap or expiration date.
In addition to the rebates, shoppers collect three Geoffrey points per dollar for purchases at the retailer's outlets, and one for general purchases, toward travel rewards. Five thousand points earn a $99 companion ticket on Northwest Airlines for kids under 17.
Bank of New York Co. chairman and chief executive J. Carter Bacot said he "believes the card will have great acceptance."
Toys R Us was eager to hammer out the details of the program, originally announced in April, in time for the Christmas season, when it does most of its business.
The world's largest toy retailer, with net sales of $8.7 billion for the fiscal year ended January 1995, Toys R Us has 618 stores throughout the country and 306 abroad. It also has 245 Kids R Us clothing outlets.
"Toys R Us is a good catch," said Michael Auriemma, a Westbury, N.Y., consultant. He called the card "great for Middle America" and said it could attract more than a million accounts. But he said the travel rewards will confuse the issue. "They don't need them to be successful."
The no-fee card carries an introductory interest rate of prime plus 1.4%, increasing after six months to 9.9% over prime. The card, will add to the bank's six million accounts and $7.7 billion in outstandings.
The two companies have had a long-standing banking relationship, including a $1 billion line of credit.
The Toys R Us Visa will be marketed through in-store applications, with millions of direct-mail solicitations flooding post offices by Sept. 23. Television ads will begin Sept. 18, with print ads appearing in Readers Digest, People magazine, Sports Illustrated, and other publications.
