Bancorp has won a giant purchasing card contract from the Department of Defense, the bank announced Tuesday.
U.S. Bancorp, a Visa issuer, called the award the "world's largest purchasing card account," saying the Defense Department's procurement program represents more than 50% of all government sales.
The bank's payment systems division has been the exclusive issuer of government purchasing cards for a decade. The Defense Department contract is the first U.S. Bancorp has won under a new system that lets agencies choose from among five bank card providers. Under the contract, which takes effect Dec. 1, U.S. Bancorp will issue purchasing cards to Army, Air Force, and other agency users for three years, with seven one-year renewal options.