CardWorks Closes Acquisition of Ally's Credit Card Portfolio and Platform

~Acquisition enhances CardWorks' position as leading credit card issuer and servicer~ 

WOODBURY, N.Y., April 1, 2025 /PRNewswire/ -- CardWorks, Inc. closed the acquisition of Ally Financial's credit card portfolio and platform today, including a team of talented individuals and 1.3 million active cardholders. Merrick Bank, the wholly-owned bank subsidiary of CardWorks, will acquire a portfolio of $2.2 billion in credit card receivables, enhancing Merrick Bank's position as a top non-prime and near-prime credit card issuer.

"This acquisition is a perfect example of what CardWorks does best - finding the right opportunities and executing with precision," said Don Berman, Founder and Executive Chairman of CardWorks. "We've worked with the Ally Card team for years as their servicing partner and bringing them under our roof just makes sense. It's a win-win that expands our reach in the near-prime market and adds tremendous value for our stakeholders. I'm proud of our team for making this happen and excited about where we're headed next."

"Speaking for the Ally Card team, we are thrilled to have CardWorks as our new home," said Rob Habgood, the founder of Fair Square, which was later acquired by Ally Financial. "We are excited to expand our reach and help more customers on their financial journey. CardWorks has done a terrific job of prioritizing a smooth transition for our employees and our customers, which puts the combined team in a great position to drive the next phase of our mission."

"We are thrilled to welcome Ally's credit card customers and team members to the CardWorks family," said CardWorks CEO Dan Pillemer. "This acquisition reflects our continued commitment to strategic expansion in the near-prime credit space and adds tremendous people and capabilities to our team."

"We expect to continue to utilize both organic and inorganic growth as we become a larger bank and specialty finance company," continued Pillemer. "We are confident that this acquisition will demonstrate our ability to acquire and seamlessly integrate high quality credit platforms."

About CardWorks

CardWorks is a trusted leader in the credit and payments industry, known for its people-first approach, innovative use of data and technology, and unwavering commitment to compliance. Founded in 1987, CardWorks has empowered millions of customers and partnered with businesses to deliver tailored financial solutions that drive success. The company excels by addressing challenges that others overlook, combining deep expertise with an uncompromising commitment to doing what's right for customers and clients. Learn more at www.cardworks.com.

About Merrick Bank

Merrick Bank, a wholly-owned subsidiary of CardWorks, specializes in empowering non-prime and near-prime consumers to achieve financial success. Founded in 1997, Merrick Bank is an FDIC-insured industrial bank headquartered in South Jordan, Utah, with approximately $8 billion in assets. The bank serves millions of customers nationwide through its credit card and recreational lending programs. Merrick Bank is committed to providing responsible financial solutions that help customers build and strengthen their credit profiles while delivering exceptional customer service. As a leader in the non-prime consumer lending market, Merrick Bank combines innovative technology, data-driven insights, and compassionate service to create pathways to financial wellness for underserved consumers. Merrick also provides merchant acquiring and payment solutions to over 120,000 businesses across the US. Discover how Merrick Bank makes a difference at www.merrickbank.com.

SOURCE CardWorks