Wal-Mart Stores, Inc.’s (WMT) Sam’s Club has recently announced that it will issue chip-enabled credit cards in order to secure customer data from hackers. The card is co-branded by MasterCard Inc. (MA) and is issued by GE Capital Retail Bank.
The new credit card would be issued as part of Sam’s Club 5-3-1 cash back program, which will start from June 23. Under this program, Sam’s Club members can get cash back up to 5% on fuel, 3% on dining and travel, and 1% on all other purchases. The cash back program is available to members of Sam’s Savings, Sam’s Business and Sam’s Plus in the U.S. and Puerto Rico.
Under this program, members can get cash back up to $5,000 annually. Not only this, no annual fee is required for members of Sam’s Club. The credit card can be used anywhere around the world where MasterCard is accepted.
The card offers warranty coverage for consumers and warranty insurance for the businesses. The card also provides Identify Theft Resolution Services for Consumers and MasterRental Coverage for Businesses, which means that the card will provide enhanced safety from fraudulent activity.
The new Sam’s Club MasterCard is expected to boost sales and secure customer data during transactions. The credit card security has been a concern lately with multiple data breach incidents. Several companies including Target Corp. (TGT) and eBay Inc. (EBAY) have had the bitter experience of massive attacks on consumer data.
Wal-Mart, with its huge database in more than 11,300 stores across 27 countries, has thus put a lot of focus on providing this extra layer of security. These new credit cards are more secure as the chip-enabled technology makes it difficult to duplicate. Thus, the data stays safe between the customers and the concerned company.
Wal-Mart currently carries a Zacks Rank #4 (Sell).