You can leave home without your American Express card now if you are heading to Neiman Marcus.
Reversing its longtime policy of accepting only American Express Co. cards and its own private-label card at its stores, Neiman Marcus Inc. on Oct. 27 announced plans to also accept cards backed by Visa Inc. and MasterCard Worldwide.
The Dallas-based retailer, which for several years has accepted Visa and MasterCard for online purchases only, will begin accepting those brands inside its 41 stores beginning Nov. 1, according to a press release.
“We listened to our customers and heard that they wanted more flexibility in their payment choices,” Karen Katz, Neiman Marcus president and chief executive officer, said in the release. “In today’s world, our customers expect an enjoyable and seamless shopping experience across all channels.”
The move could also be because of a shift in ownership of Neiman Marcus’ credit card portfolio, suggests Brian Riley, senior research director with TowerGroup. “There are new priorities coming to bear on the portfolio,” he tells PaymentsSource.
HSBC Bank USA for several years has owned the Neiman Marcus credit card receivables portfolio, but Capital One Financial Corp. in August announced plans to purchase HSBC’s private-label cards operation (
Neiman Marcus executives were not immediately available for comment.
Despite Neiman Marcus’ new card-acceptance policy, Amex is not likely to fall behind in its share of department store card transactions.
Macy’s Inc. in March 2010 announced that Amex would replace Visa as its partner for all Macy’s and Bloomingdale’s cobranded credit cards (
Citigroup Inc. in 2005 purchased Macy’s credit card receivables and continues to manage the portfolio. Citi was trying to sell its private-label cards portfolio at the time Amex inked the Macy’s cobranded card agreement, but on Oct. 17 Citi announced it has recommitted to private-label cards, taking the unit off the block and integrating it back into its core card business (
Neiman Marcus’ deal to expand credit card acceptance underscores merchants’ pressure to squeeze profits out of their credit card operations in a tough economy, Riley contends.
“Neiman Marcus has had some financial ups and downs, and surely they are pushing to make sure they’re getting the best deals they can get from the card brands,” Riley says.
Neiman Marcus reported adjusted net income of $74.3 million for its fiscal year ended July 30, compared with a loss of $1.8 million the previous year. Its revenues during fiscal 2011 rose 8.4%, to $4 billion from $3.69 billion.
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