The Unusual Nature Of The Co-branded Credit Card Programs
If you thought that co-branded credit card programs are something new
, you might be surprised to learn the origins of the program. Most people recognize the use of Visa and the MasterCard logo on major credit cards. At one time, many stores recognized the value of these cards and wanted to get a piece of the same interest and fees being generated. Many stores began to offer in-store credit lines that eventually became store credit cards. Today, many of these cards are accepted in many other locations besides the original locations that offered the cards.
One such card is the Sears Store credit card. This particular card can be used in other stores (company partners) and at many online websites. Smaller businesses wanted to take advantage of this idea and made deals with banks to offer their own version of Visa and MasterCard credit cards. The only difference was that the company could place their company logo and name on the card to remind customers who gave them this particular line of credit. This was the beginning of the co-branded credit card programs.
Today, thousands of companies offer some form of the co-branded credit card programs to their customers. Many times customers receive pre-approved cards that they did not even apply for. The idea is to keep a company's name and logo in front of customers to help build customer loyalty. As competition becomes much more pronounced in the economic environment that businesses are forced to operate in today, people are becoming much more choosier about which company they allow to offer them credit.
Before your company decides to offer co-branded credit card programs, take some time to learn all the features and options that are made available with the program. Offering the wrong program can be just as detrimental as not offering the right program.