• October 25, 2010

U.S. Bank will issue credit cards and reloadable prepaid debit cards with rewards to help Kroger Co. customers save money on groceries and fuel.

Customers who shop at Kroger's family of stores -- including Ralphs, Fred Meyer, Fry's, King Soopers, Dillons, QFC and City Market -- will earn free groceries and fuel discounts with every purchase when they use their 1-2-3 Rewards MasterCard, Fred Meyer Rewards MasterCard, Ralphs rewards plus MasterCard, or Visa prepaid debit card with 1-2-3 Rewards from U.S. Bank.

Offering this suite of rewards cards is the next step in a long-standing strategic alliance between U.S. Bank and Kroger. Beginning Nov. 8, existing cardholders' accounts will transfer to U.S. Bank, which gives Kroger customers access to new benefits like mobile banking and 24-hour customer service.

Cardholders who make purchases using their rewards card automatically earn points toward reward certificates for free groceries. Every dollar spent earns rewards points, with double points earned for purchases made in Kroger's family of stores and triple points for buying store-brand products. In addition, cardholders may earn an extra five-cents-per-gallon discount on fuel purchases at participating Kroger-operated fuel centers.

U.S. Bank's financial services relationship with Kroger began in 1930. U.S. Bank currently provides a number of retail, corporate banking, trust, capital markets and credit services for Kroger. Kroger has nearly 2,500 locations operating under several brand names and U.S. Bank operates bank branches in 191 of those locations through an in-store banking relationship.--Tanya Irwin