After AmEx lost its' partnership with Costco, it's now facing another harsh loss. Fidelity, a 6 year partner of Amex, has been seen shopping around for new co-brand partners with better terms. As these co-branded cards account for nearly 30 percent of all transactions, the bidding war between banks and networks will most likely continue to be costly, and consumers will have to get used to new credit terms.
Visa Inc. and MasterCard Inc. are in talks with Fidelity, vying to replace AmEx on a card that’s been amassing customers for more than six years, according to the people, who asked not to be identified because negotiations are private. AmEx is parting with Costco Wholesale Corp. and JetBlue Airways Corp., and losing the Fidelity deal would affect a key area of growth: facilitating transactions in which another bank is the lender.