Bank of America to continue Visa partnership

3 October 2006

Bank of America (BofA) yesterday announced that it would extend its credit card partnership agreement with Visa for a further six years.

The bank, which is the largest issuer of Visa-branded cards, decided to extend a relationship with Visa that has been in place for 30 years, despite rumours that it was considering alternative arrangements.

BofA chief executive Ken Lewis had hinted earlier in the year that his organisation might leave the Visa fold, possibly to create its own rival payment network to take on Visa and Mastercard.

In a Wall Street Journal interview in April Mr Lewis said of the 30-year-old arrangement with Visa that BofA should have put more energy into developing its own brand rather than Visa's.

John Philip Coghlan of Visa USA said: "This is great news for Visa, Bank of America and all of our customers who will benefit from the product and service innovations that this partnership will deliver."

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