September 3, 2009
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News: U.S. Bank Gets Rejected
U.S. Bank's effort to hold on to its FlexPerks Visa credit card customers has not been sanctioned by the National Advertising Division (NAD) of the Council of Better Business Bureau. U.S. Bank was the provider of the Northwest Airlines WorldPerks credit card; however, after the merger between Delta Airlines and Northwest, Delta designated the American Express Company as the provider for their Delta SkyMiles card. U.S. Bank launched its new card the FlexPerks Visa to all of its WorldPerks customers. In their marketing campaign of the FlexPerks Visa credit card, U.S. Bank touted the card as providing "more value" and faster in earning airline miles. The bank also claimed that the FlexPerks card, unlike the American Express Sky Miles card, did not have any blackout dates and capacity controls.
American Express challenged U.S. Bank on its advertising and filed a complaint with the NAD. The council ruled in favor of American Express and asked U.S. Bank to halt advertisement of their FlexPerks credit card that makes these claims. Although the agreement is not binding, U.S. Bank indicated that they had previously halted ads that claim that the FlexPerks credit card provides greater benefits with no blackout dates and that they would take the council's decision under advisement. The council did, however, support the use of U.S. Banks' "Free vs. Fee" ad which plays up its no fee benefit.
As the two major credit card companies continue competing for previous Northwest Airlines WorldPerks customers, it is unlikely U.S. Bank will back off. The FlexPerks card has some valuable benefits that make it a strong choice. For one, the U.S. Bank Visa card is accepted in twice as many places than American Express. Another appealing benefit to the FlexPerks card is that redemption of rewards is not limited to Delta Airline, but can be redeemed for travel on over 150 airlines. Flex Points can also be redeemed for merchandise, gift certificates, and other valuable items.