TD Bank will officially become the primary credit card issuer for Aeroplan as of Jan. 1, 2014.This means the bank will replace the loyalty program's current financial partner, CIBC.
The move was somewhat expected after Aeroplan pointed at the pending change with the announcement of its program enhancements in June, saying "TD Bank Group (TD) will become its new financial credit card partner...unless CIBC chooses to exercise its contractual right to match the terms of the agreement which expires on Aug. 9, 2013."
Now, there are ongoing active discussions among TD, Aimia (Aeroplan's parent company) and CIBC about a broad framework that would see CIBC retain cards held by their franchise banking customers which are about half the portfolio and TD acquire the remainder.
The parties are trying to reach agreement, complete due diligence and finalize definitive documentation by Aug. 26, 2013, however, according to TD, "There can be no assurances that an agreement will be reached."
"There are ongoing active discussions among Aimia, TD and CIBC about a broad framework that would see CIBC retain cards held by their existing customers. Should this happen, there could be Aeroplan co-branded cards offered by both CIBC and TD," according to an Aeroplan spokesperson. "It's important to note that nothing changes this year for Aeroplan Members – they can continue to earn miles on their CIBC Aero credit cards.
"Also, it's important to point out that all miles are deposited into a member's Aeroplan account (not tied to a credit card) so members can always redeem their miles."
As it stands, beginning in January 2014, TD will offer a full suite of co-branded Aeroplan Visa credit cards, giving customers several ways to earn miles for flights and enjoy other features and benefits of the Aeroplan program, including benefits within Aeroplan's new Distinction recognition program which also launches in January.
Customers will be able to choose from enhanced premium, premium and mid-market co-branded Aeroplan credit cards, each providing different benefits and earn rates. It is expected that the new co-branded credit card line-up will also include a credit card for U.S. residents and a credit card for Canadian small business owners.
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