There is risk of the retail partner failing.

Example of private label credit card. Private-label credit cards Launching private-label credit cards has been one successful method of mitigating fees particularly for large merchants. Some private label credit cards give qualifying shoppers the option to finance purchases or offer special perks. Such a card is branded for that particular retailer independent dealer or manufacture.

Such credit cards are known as the private label credit cards and these can be only used at the specific store that issues them. A PLCC usually offers a reward associated with the retailer. Smaller shops will be able to participate in a private label credit card program and 3 adds an exciting channel to the Discover closed-loop business.

Private label cards often exhibit different traits than general purpose cards in that private label cards normally have lower credit limits higher interest rates higher credit risk profiles and limited use for example limited to a particular merchant. Sellers of private label items can specify product features in detail. Example jewelry retailer Zales reports that 40 percent of its US.

There are many teams manufacturers non-profit organizations and websites that offer their own cards. While some credit cards are managed by the retailers by themselves. Sales come from customers using the stores private-label cardiv For issuers retail cards represent both risk and reward.

Private label products are purchased by a retailer from a manufacturer and sold under the retailers own brand. Even in a robust economy the store cards ordinarily incur higher delinquencies and charge-offs than general-purpose cards with the average user possessing a slightly less credit-worthy profile. Finding a credit card financing company like CrediCard requires some digging because the number of firms offering private-label cards to start-up and entrepreneurial firms has shrunk considerably.

For more information about private label cards and the payments industry be sure to read Private Label Credit Cards in the US 11 th Edition which provides a wealth of insight on this growing market including m arket size and forecast p rogram analyses usage trends a pplication and usage motivators l oyalty and digital engagement and profiles of p rivate label credit card bank issuers. Private Label Credit Cards. MAYNARD Mass June 12 2018 PRNewswire-PRWeb -- Private label credit cards which can only be used in a defined group of retail.