Wells Fargo is ending a flashy credit-card partnership that lets people earn rewards points for charging their rent. The partnership with Bilt had been scheduled to end in 2029, but Wells decided to exit early after it became a money-losing venture, according to people familiar with the matter. Wells warned Bilt it could change the card’s terms otherwise, including tacking on an annual fee of around $250 to $300 for cardholders. Bilt said it is developing its Bilt Card 2.0 with fintech firm Cardless and that its valuation skyrocketed to $10.75 billion. The company said the new card will launch in February and that cardholders will be moved from Wells Fargo. Wells’ partnership with Bilt was launched in 2022 as part of the bank’s plans to build out its co-branded credit-card business. The Bilt card quickly became a hit because of a rare perk: It lets cardholders earn rewards points for charging their rent. Wells had originally seen the card as a way to attract young customers who would eventually turn to it for a mortgage. But the bank has since pulled back in the mortgage space and by mid-2024, Wells was losing as much as $10 million a month on the card. At that time, Bilt and Wells expressed their commitment to the partnership. Most landlords historically didn’t accept credit cards because they refuse to pay the fees for card transactions that often run between 2% and 3%. Bilt structured the card so landlords won’t incur the fees. Wells instead has been eating much of that. This has led to Wells paying Bilt a fee for each rent transaction. Interest income Wells expected from card balances didn’t materialize because many cardholders have been paying their bills in full each month. The partnership also raised concerns inside Wells about potential money-laundering risks, which the companies have worked to address. When people charge rent on their cards, a third-party company sends a check for that amount to the designated landlord. That is easy for Bilt to track for a real-estate company that participates in its rewards program, but harder when it is a mom-and-pop landlord or other company. Wells’ financial losses triggered a renegotiation of the program that began in 2023. By the second half of last year, Wells was pushing for big changes, including lowering the fee it pays Bilt and scaling back the points cardholders earn for rent payments. One scenario involved cardholders having to spend on non-rent purchases to be able to earn points on their rent charges. Early this year, Wells told Bilt the card’s terms will have to be totally redone or the bank would look to exit the program.