What is a ‘Co-Branded Christmas card’
A co-branded card is a retail merchant credit card that is issued in partnership with a precise network processor. Co-branded cards are branded with the logo of the network processor and retailer.
Force DOWN ‘Co-Branded Card’
Co-branded card relationships can be an important involvement of a retailer’s business. They allow the retailer to issue both one purpose cards and open loop credit cards to customers. Co-branded behave relationships can be structured in a variety of ways.
Co-Branded Card Relationships and Bank card card joker Processing
In order to issue a co-branded credit card, a retailer be obliged partner with a financial institution. Often the financial institution is the retailer’s receiving bank. This can simplify the co-branded card transaction process and the relationship resolution rely on the acquiring bank’s network processor. In other cases, the retailer may judge to work with a third-party credit card provider. In all situations the network processor is the peak logo displayed on the co-branded credit card along with the retailer. American Express and Determine are two companies that provide for unique co-branded card relationships since they enjoy the capacity to serve as both the credit issuing financial institution and the network processor.
In all records, the merchant acquiring bank works with the retailer to process any electronic payment come clean purchases. If the co-branded card relationship is through the acquiring bank then the negotiation process can be simplified, specifically in the case of branded purchases where the bank and retailer are the not two entities involved. If the merchant works with a third-party to issue solvency cards then the third-party card issuer and co-branded processor last will and testament be involved.
Co-Branded Card Benefits
Retailers can work with any provider they select to establish a co-branded card relationship. Retail credit card issuance allows a baron to offer customers many benefits. Retailers often market mark-downs for customers using their co-branded credit card. They also suffer customers to accumulate points which can be used as discounts toward later purchases.
When a customer applies for a merchant credit card they can be approved for either a set aside purpose card or an open loop card. A single purpose business card allows the customer to only use the card with the merchant. These index cards are issued with a credit limit and offer customers the same precept rewards. They are not usually visibly co-branded however they may peaceful follow co-branded transaction procedures.
If a customer is approved for an open whorl card then they have the ability to use the card anywhere that it is allowed. Open loop cards are generally the most visible co-branded carte de visites since they include the network processor’s logo. They press for outside merchants to use the co-branded processor and contact the card issuing pecuniary institution for approval. The card issuing institution also manages the intents accumulated by the customer with the merchant.