Credit Card Co-Branding Agreement

Currently, one in two Americans has a co-brand card and 64% of them use their cards at least once a month. Co-branding credit cards should not be confused with credit cards that can only be used at the point of sale of the issuing brand, such as. B the Target REDcard and the Victoria Secret`s Angel. These brands issue their cards through direct agreements with payment system providers. Although both techniques follow co-branding procedures, it is the latter type – the partnership with a third-party card issuer – that is commonly referred to as a co-branding card. This is the arrangement that indicates both the name of the retailer and the name of the network transmitter/processor on the card. A 2016 Nielsen report found that 67% of consumers buy more often and spend more in stores that offer loyalty programs. Co-branding credit cards support these systems by allowing customers to earn points with other brands. Visa does not expose the products of the card itself, but can help our distributors and distribution partners implement a successful co-brand program.

Traders should plan at least six months to launch a program; However, timing depends on a number of factors, including the exhibitor, schedules and complexity of the program. For starters, merchants should follow the following steps: The Amazon Prime Rewards Visa Prime card (available to Amazon Prime members), launched in January 2017, offers a 5% discount on all purchases made on Amazon.com. It also offers 2% cashback in payment at restaurants, gas stations and pharmacies, and 1% on all other purchases. Other benefits include overseas transaction fees, travel insurance and 24/7 concierge service. In January 2018, IKEA announced that it would work with Alliance Data to bring a customer loyalty credit card program to market. The card allows you to shop in-store, buy gas and food, and pay phone or energy bills. It is free and offers financing opportunities to clients who are doing major renovations in their homes. Use the expertise of the visa industry to succeed in your co-branding program. In addition to Visa, consultants can help merchants develop their business plan for a co-brand card and develop a pro-proposal (RFP) application to ensure the interest of issuers. For all transactions, the merchant who acquires the bank works with the merchant to process all purchases of electronic payment cards.

If the co-brand relationship is done through the intermediary bank, the transaction process can be simplified, especially for brand purchases where the bank and retailer are the only two companies involved. If the merchant works with a third party to issue credit cards, the card issuer and the co-marker are involved.