Co-branded Card

A co-branded card is a card that a seller of goods or services issues in partnership with an issuing bank. Moreover, such cards allow you to receive additional discounts for your customers, for example, in a chain of stores.

If even the client is not interested in purchasing a card of a specific bank, then the presence of bonuses or other benefits will prompt him to order a co-branded card. It allows you to expand the boundaries of your business, attracting more customers.

How do co-branded cards work?

Co-branded cards work like another type of bank card, the cardholder can pay her for purchases, withdraw cash and more. On these cards, most commonly, there is a logo of partner companies.

In order to issue a co-branding card, a merchant or organization must act as a partner of a financial organization. Usually, acquiring bank acts as a partner. In other words, a company that accepts and processes payments. This is the easiest and most convenient way.

Another option is to choose a third-party provider as a partner. For example, American Express – this company, being both a payment processor and a financial organization, provides co-branding solutions. Visa company is the other example.

Acquirer processes customer transactions that use any type of card transaction. If you use a co-branded card, then the transaction process becomes easier. When working with a third party, additional subjects are involved in the process.