BJ's Wholesale Club has agreed to pay $1.3 million to Beneficial National Bank USA as part of a legal settlement over a credit card dispute, the bank announced last week.

Beneficial sued BJ's in September, saying the retailer was unwilling to make changes in a cobranded MasterCard program that was losing money for the bank. The discount chain's countersuit was dismissed. Under the settlement, Beneficial will be able to charge annual fees on unprofitable accounts. The 12,000 wholesale club customers whose accounts were terminated will be reinstated, the bank said.

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