Private label credit card program

That will be the first step in understanding the need for a general purpose credit card as a rewards accelerator. In talking about the co-branded credit card industry, you will no doubt come across two types of programs in the marketplace: co-branded and affinity. Some definition for each:. Co-branded card programs : Bank partners with a marketing partner e. The value proposition i. Affinity card program : Pure affinity cards are similar to co-branded cards, except that the bank's marketing partner is typically a charity, an association, educational institution or a similar organization for which consumers would have a partiality.

The end user receives no tangible benefit for using the card. Each purchase on the card results in a donation to the organization usually very small percentage. These days, affinity cards are beginning to straddle the two concepts i. Airline frequent flyer programs are usually considered a model for the current co-branded credit card in terms of benefits and the monthly spend.

Depending on the rewards segment that you choose to compete in, the clarity and persuasiveness of the rewards offer may represent a relatively higher or lower marketing communications challenge. Not all rewards credit cards provide the spending advantage typically associated with co-branded credit cards e. So you're not guaranteed success just for putting a card into market, even if you do have a strong brand - just look at the recently launched and failed Neiman Marcus American Express card program launched in and marketing efforts have reportedly ceased in In considering the addition of a co-branded credit card to your loyalty program, don't lose sight of the macro market.

There are thousands of co-brand and affinity programs in the market well over eight thousand. Co-brands have appeared in virtually every industry. The average U. Then consider that a record 3. Make no mistake, the above stats are meant to scare you. With that said, despite the obstacles mentioned above, banks continue to aggressively pursue new alliance.

We are operating in an era of loyalty and credit card saturation. If your intention is to proceed, then make sure you can answer the following questions regarding your program:.

IF you are a merchant looking to launch a co-branded credit card, do yourself a favor and hire a consultant to help you with the Request For Proposal RFP process.

Most co-brands these days are brokered by a consultant. There are a number to choose from:. Your consultant will help you navigate the process, find the best partner and negotiate the best deal through the RFP. Although these days, the consultants have gotten so good at squeezing money out of the banks and the Brands that in many cases, few funds are available to properly launch and market the program. As such, agree in advance with your marketing partner on a Marketing Fund and the method by which it will be funded real dollars vs.

Once you have your consultant on board, the RFP process will usually involve two stages:. Depending on your objectives, some banks are better than others. Explore private label credit cards in greater depth with our simple guide.

First off, what is a private label credit card? Visa, Mastercard and in most cases, they cannot be used any other store than the brand where they were issued.

For example, there are many different store cards or retail branded credit cards that customers can take advantage of in the UK market. Private label credit cards are run in collaboration with banks or third-party financial institutions. The third-party partner or private label credit card provider assists in several areas, including issuing, funding, and payment collection. Because private credit cards are managed by banks or financial institutions, they offer exactly the same level of security and transparency as standard-issue credit or debit cards.

There are numerous benefits associated with private label credit cards. Most importantly, they allow retailers to offer more lenient terms such as deferred payment to customers than would otherwise be possible. This can help to encourage customers to spend more money at your store. In addition, private credit cards may give your customers the opportunity to earn loyalty points which can be used to gain discounts on future purchases, thereby increasing customer retention.

In many cases, private label credit cards also offer VIP features, such as the ability to make returns without presenting a receipt. Private label credit cards can be a great way to boost customer loyalty and encourage customers to buy from your store.

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With a legacy of over years of craftsmanship and passion for fit, Caleres continues their mission of inspiring people to feel good… feet first. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, initiation or completion of strategic initiatives, future dividend declarations, and future economic conditions, including, but not limited to, fluctuation in currency exchange rates, market conditions and COVID impacts related to relief measures for impacted borrowers and depositors, labor shortages due to quarantine, reduction in demand from clients, supply chain disruption for our reward suppliers and disruptions in the airline or travel industries.

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