Both banks will offer members an enhanced suite of Aeroplan Visa credit cards to include more earning options and benefits
Aimia confirmed today 10-year financial credit card agreements with each of TD Bank Group and CIBC, effective from Jan. 1, 2014.
TD will become Aeroplan's primary financial services partner and credit card issuer, under an amended version of the agreement announced previously, while CIBC will also continue to be an issuer of Aeroplan credit cards.
Aimia also announced entering into a purchase agreement with TD and CIBC, under which TD will acquire approximately half of the current Aeroplan card portfolio and CIBC will retain the balance, comprised of Aeroplan cardholders who have broader banking relationships with CIBC.
Both banks will offer members an enhanced suite of Aeroplan Visa credit cards to include more earning options and benefits, including exclusive Air Canada benefits, in addition to the changes to Aeroplan with Distinction benefits to be launched in January 2014 for all Aeroplan members.
The terms of both the new 10-year financial credit card agreements include a more than 15 per cent increase in price per mile to align to market levels and more comprehensive collaboration around data and customer insight analytics.
The TD minimum miles purchase commitment has been updated to a five-year volume commitment based on miles purchases by TD and CIBC. These payments, in aggregate, could be up to $95 million.
Features of the new credit card offerings to be introduced by the banks during 2014 were announced on June 27, 2013. TD will market its cards through a wide range of TD, Aeroplan and mass market channels, with CIBC using its proprietary channels to market to CIBC customers.
Regardless of whether members will transition to a new card, all Aeroplan Miles that members accumulate through the end of 2013 are deposited into their Aeroplan accounts and are not tied to their current credit card.
16 SEP 2013
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