Wachovia decided to re-enter the US credit card market as a direct issuer after terminating a card agreement with MBNA following Bank of America's acquisition of the credit card firm last year.

The bank will use the vendor's TS2 payment-processing engine and portfolio management services to launch its initial card programme in early summer.

Steven Boehm, president of card services, Wachovia, says: "Our company has decided to re-enter the card-issuing business to provide Wachovia customers with outstanding products and stellar customer service. TSYS is a company we can build a trusting relationship with."