First National Bank of Omaha in Nebraska is expanding its cobranded card products under a new agreement with Chrysler Group LLC.
First National will issue credit cards that carry the Auburn Hills, Mich., automaker's various brands, including Jeep, Dodge and Fiat, Chrysler said. Chrysler will market MasterCard Inc.-branded cards through its dealerships and online starting in May.
Cardholders will earn three points for every $1 spent at participating dealerships, two points for travel-related purchases and one point on all others. The program is designed to "reward Chrysler Group's passionate drivers," Stephen Eulie, the president of First Bankcard, First National's credit card division, said in an April 6 Chrysler press release.
First National has been making a bigger push to grow its cobranded card business, which has seen retrenchment from other issuers and retailers in recent years.
"The economic crisis caused lots of chaos in how banks have managed cobranded programs," Philip Philliou, a partner with the payments consulting firm Philliou Partners LLC who worked with Chrysler on the First National deal, said in an interview. "We've seen lots of great programs disappear. We've seen a number of issuers either get out of co-branding or basically not renew agreements."
Bank of America Corp. previously issued a credit card for Chrysler, but the program ended in 2009, Philliou said.