American Express Co.’s small-business division, called Open, has launched a cobranded credit card for small-business owners with home-improvement store operator Lowe’s Cos. Inc.
The Lowe’s Business Rewards Card enables business owners to earn points on purchases, the first time the retailer has enabled customers to earn rewards through one of its credit products. Cardholders receive double points for using the card at Lowe’s locations and triple points on restaurant and office-supply purchases and when paying wireless-phone bills.
The deal is part of AmEx’s continuing effort to support businesses, AmEx says. “We have been serving business owners for more than 20 years, and we remain committed to meeting their spending needs to help them operate resilient businesses,” Esra Alev, vice president, American Express Open Cobrands, said in an e-mail statement to PaymentsSource. “In fact, this card launch reflects our continued commitment to lending to small businesses. Through the Lowe’s Business Rewards Card program, we will extend more credit that business owners can use to run and grow their companies while earning rewards they can reinvest in their businesses.”
Lowe’s developed the card to give its small-business customers the ability to use their cards outside the store, according to a spokesperson. Lowe’s has offered businesses store cards since 1979, though they could only use them at Lowe’s locations.
The retailer decided to work with AmEx because it considers the company a leading issuer of small-business cards. “AmEx understands what business customers need,” says the Lowe’s spokesperson. “They have a commitment to customer service, and we thought would make a great partner for us.”
The Lowe’s card is well-timed in light of the Credit Card Accountability, Responsibility and Disclosure Act and the economy, notes Megan Bramlette, managing associate at Auriemma Consulting Group. Moreover, there are fewer providers of business credit cards with players such as Advanta shutting down last year, she adds.
“Small businesses are quite hungry for credit, and they rely on it heavily to operate their businesses,” Bramlette tells PaymentsSource.
During the past several months, AmEx has been doing more to offer products and services to small businesses. In December, the company launched AcceptPay, an online invoicing and payment product designed to help merchants improve cash flow during these tough economic times (
