At a Toronto press conference this morning CIBC and American Express announced a partnership between the two companies that will see the launch of three new credit cards.

The credit cards, branded the Entourage line, will make CIBC the first bank to offer both American Express as well as VISA cards. “This is a very exciting moment for American Express, Canada is an important market to us. This relationship will take the American Express franchise in Canada to a whole new level,” says John Linen, vice chairman, American Express Company.

The new cards are the CIBC Entourage American Express Card, the CIBC Entourage Platinum American Express Card, and the CIBC Entourage Business American Express Card.

The CIBC Entourage American Express Card will feature a smart chip microprocessor that functions similar to a mini-computer. The card will be embedded with a 32K processor that will enhance the security of online shopping, the first of its kind in a Canadian bank. Additional features can be added on later.

According to Christine Croucher, executive vice president, CIBC card products division, the terms of the agreement are confidential. However, she says that CIBC’s commitment to marketing and issuing its VISA cards will not diminish.

“VISA Canada is disappointed that we are going to be issuing American Express cards but they understand. We’ve reassured them that that we will remain committed to VISA,” she says. Currently there are 3.9 million VISA cardholders.

Advertising and marketing for the new cards will be intense. The public will be exposed to TV commercials that feature a “tongue in cheek approach”, as well as information over the web and direct mail.

CIBC will be responsible for the marketing (which has a budget in the double digit millions), in addition the bank will also issue the cards, own the accounts, and handle all aspects of customer service and support.

“The cards will appeal to our existing customers as well as people who may not be CIBC customers. Because of the many features on the new cards, we’re confident they will be persuaded to change cards,” she says.

Success of the new cards will be measured in terms of the number of new accounts, purchase patterns, and financial returns. “We’re confident that we will be making money quite quickly,” adds Croucher.