What Is a Private Label Credit Card?

Target once offered this type of product as well but no longer offers a general use or full service credit card. This type of comprehensive credit card is common from private label retailers. Borrowers with a good credit profile and high credit score are likely to be approved for a full-service credit card that receives the benefits offered from the retailer while also being accepted at other merchants as well. This term applies to any such credit card account, regardless of whether it is issued by the merchant or its affiliate or by an unaffiliated third party. A portfolio of white label credit cards located in Sydney, Australia.

Instead of relying only on traditional credit cards, these brand-specific alternatives make it possible to boost brand awareness, nurture customer loyalty, increase revenue, and decrease cost —all at the same time. https://xcritical.com/s are just one of many payment options available to customers. Alternatives to white label credit cards include traditional debit cards and mobile payment methods like Apple Pay and Samsung Pay. You can consolidate your brand awareness and increase customer retention. Looking at the fancy card will be enough to bring customer loyalty to an entirely new level. The private label credit card program strikes a partnership with a third-party financial institution that implements payment collection and card issuance.

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Private label cards can also make shopping more convenient for customers through features such as returns without receipts. Mobile payment methods like Apple Pay and Samsung Pay allow customers to purchase using their smartphone. These payment methods are convenient, secure, and can simplify the checkout process.

• With today’s technology, building a customer financing portal, or providing some form of branded credit to your customers has never been easier.
• From marketing to product development, we help you create and launch a program that fits your customers needs.
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• In the face of competition from fintech disrupters, card schemes have significantly improved their offerings by introducing contactless payments, tokenisation services and new security measures.
• But even if you can get one, should you get a private label credit card?

This advanced security tool gets activated every time you make an online purchase or payment, double-checking whether it’s actually you on the other side of the screen. Crassula has built a technical infrastructure that brings payment service providers, alternative payment methods, and third-party business solutions together. You can send us your request and have your card issued in less than two weeks. Thanks to outstanding solutions provided by the Wallester team, the launch of Holm’s new Liisi credit card to the Estonian market has been smooth and our clients can enjoy flexible credit card services.

Getting a Private Label Credit Card

Private label credit cards tend to have higher interest than other credit cards, too, which makes carrying a credit card balance more expensive. Financial processes can inevitably become time consuming and may even leave you feeling overwhelmed, but the reality is that they don’t have to be complicated. There are many benefits to optimizing your company’s financial processes with technological innovation, such as introducing white label card issuing solutions, at the forefront of driving this ease.

There are several benefits to the retailer or brand of offering private label credit cards and therefore often offer the “richest” customer perks. While a private label credit card often has the logo of a particular merchant or store, the day-to-day processing is handled by a bank or other financial services company. You’ll make your payments directly to the processing company, usually not to the store itself. One of the credit card rules for successfully managing your credit is to pay your bill in full, each and every month, so make sure you understand who and when you need to pay. A private label credit card is a type of credit card that can typically only be used at one particular store or merchant. Many merchants use private label cards as a way to incentivize and reward their most loyal shoppers.

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Now the dominant form of payment in the world, the earliest version of a credit card was the Charga-Plate, which looked like a dog tag and had customer details embossed on it. Do you want to make the shopping experience more accessible for consumers and drive repeat purchases? Thus, retailers or brands assign a third party to issue the cards and collect the payments from cardholders.

Cardholders want to be able to pay anytime, anywhere and any way they choose. Our Discover® Digital Exchange solution streamlines mobile payment enablement and tokenization services for secure, convenient payments. Virtual cards enable you to make instant payments, transfers, and online purchases in an even more secure and reliable way.

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This makes private label cards more profitable for retailers since processing costs can be more than 4% per transaction with regular credit cards. Private label credit cards are a particular kind of credit card that’s typically only good at one specific store. Some stores or other merchants offer private label credit cards to give better terms to certain customers than they might otherwise be able to offer. Many merchants also provide these cards as an incentive for customers to spend more, since they can potentially defer payment and/or earn loyalty rewards.

Access innovative capabilities to power your program

Private label credit cards do not have a credit card network logo such as Visa or Mastercard and can generally be accepted only by the issuing brand. As with other types of credit cards, private label cardholders can make purchases white label payment gateway against their available credit lines and are required to make a minimum payment each month to avoid being charged a late fee. Unless a promotional rate applies, interest accrues on any balance carried beyond the grace period.

Enterprise Payments

This model is usually leveraged by businesses that have limited technological and licensing capabilities, but have a strong brand and customer base to market a ready product to. Large companies such as supermarket chains or airlines often issue their own credit cards. And if you are a retailer or business owner thinking about how to bring some novelty and innovation to your company or store, private label cards might be the thing you are searching for. Mobile payments have come to the forefront of financing technology lately.