Private Label Card, The Differences

When it comes to credit cards, there are two types – co-branded and the private label card.  This type of credit card program is unique and well defined, but most importantly, it is designed to provide customers with the buying power they want and deserve.  The private label card is offered through the more reputable banks to include Wells Fargo.  In this case, they have a program known as Wells Fargo Financial Retail Services, which increases first time and repeat sales.[br]

When it comes to credit cards, there are two types – co-branded and the private label card.  This type of credit card program is unique and well defined, but most importantly, it is designed to provide customers with the buying power they want and deserve.  The private label card is offered through the more reputable banks to include Wells Fargo.  In this case, they have a program known as Wells Fargo Financial Retail Services, which increases first time and repeat sales.[br]

Using this bank as an example, we will explain the different components of a private label card.  For starters, this program consists of revolving credit specifically designed for a particular business.  Included with the program is a variety of promotions, discounts, rewards, and other features intended to make a business more appealing to buyers.  With that, people will shop at the store more and come back time after time.

Although the features of a private label card will vary somewhat from one bank to another, the following are the more common offerings:

·    Internet Applications
·    Optimizing Credit Limits
·    Customized Marketing Materials
·    Portfolio Acquisition
·    Diverse Promotions

Starting with internet applications, the private label card would involve the bank’s online application to connect to the retailer’s website.  That way, the store’s customers would have the ability to apply for the private label card online.  Of course, they could still apply in person if wanted although the online option is more convenient and faster.[br]

The next common feature for a private label card pertains to optimizing credit limits.  In this case, the bank uses a unique computer scoring model that would allow them to make almost instant decisions regarding a person’s application and optimal credit limits.  As long as the applicant can meet certain guidelines, if the person wanted to purchase something more expensive, the credit limit could be increased quickly.

Another feature of the private label card has to do with customized marketing materials.  With this, the store’s card applications and even credit card would display the name of the business, as well as the store’s logo and business colors.  With a private label card, the retailer could also choose to have a message added to the monthly statement for promotional and marketing purposes.

For the portfolio acquisition connected with the private label card, the bank would purchase portfolios often as a normal part of business.  With this, the bank has the expertise to convert the retailers accounts receivable into a more professional and seamless application.  That way, customers, as well as the retail business itself enjoy a more efficient operation.

Finally, the private label card would also include various promotions.  Again, these would vary from one card to another but overall, customers are provided with more buying power while paying less.  For instance, one benefit might be paying no interest when the minimum monthly payment were paid on the private label card or a lower interest rate overall.  Without doubt, the private label card has tons of benefits for customers and retailers.